Rising Backlash Against Musk
Tesla Stock Price Declines This Year
Tesla Sales Plummet
Elon Musk, CEO of Tesla and head of the Department of Government Efficiency (DOGE) since the inauguration of U.S. President Donald Trump, has seen his net worth drop by more than 160 trillion won, Bloomberg reported on April 29 (local time).
According to the Bloomberg Billionaires Index, Musk's net worth has decreased by $113 billion (approximately 162 trillion won) since January 17. This represents about 25% of his previous total net worth.
Despite this decline, his net worth currently stands at $335 billion (about 480.4 trillion won), allowing him to maintain his position as the richest person in the world. The sharp decrease in Musk’s net worth over the past 100 days is due to the drop in Tesla’s stock price. Tesla shares have fallen by 23% since the beginning of this year and by 32% since President Trump’s inauguration. As of the market close on this day, Tesla’s stock price was $292.03, which is similar to the $288.53 recorded on November 6 of last year, when Trump’s election victory was confirmed.
Buoyed by Trump’s election and the resulting increase in Musk’s political influence, Tesla’s stock reached an all-time high of $479.86 on December 17 of last year. However, in the 100 days following Trump’s inauguration, the stock declined and returned to its previous level.
At President Trump’s direction, Musk took charge of the Department of Government Efficiency, declaring he would “reduce wasteful and fraudulent spending.” He drastically cut federal agency budgets and led large-scale layoffs, which sparked backlash. As resentment toward Musk grew, Tesla stores, vehicles, and charging stations also came under attack.
Tesla’s vehicle sales have also plummeted. In the first quarter of this year, Tesla’s revenue and net profit decreased by 9% and 71%, respectively, compared to a year ago.
However, Bloomberg pointed out that Musk has also gained significant business benefits through his government activities. SpaceX, his space company, secured a $5.9 billion (about 8.5 trillion won) contract to launch military satellites for the Department of Defense. The Department of Commerce opened the way for SpaceX’s satellite internet service, Starlink, to participate in a $42 billion (about 60.2 trillion won) rural internet expansion project that had previously focused on wired networks.
Bloomberg also reported that X (formerly Twitter, renamed after Musk’s 2022 acquisition) has seen a surge in advertising revenue this year after struggling with declining ads, and could record its first revenue growth in four years.
Additionally, Democratic members of the U.S. Senate Permanent Subcommittee on Investigations recently claimed in a report that Musk, through his government activities, has influenced various federal agencies and avoided at least $2.37 billion (about 3.4 trillion won) in fines or lawsuits previously imposed on his companies for violations.
On April 22, during Tesla’s earnings conference call, Musk stated that most of DOGE’s major tasks had been completed and that starting in May, he would reduce his government duties and devote more time to managing Tesla. President Trump also told reporters on April 23, “We expected him to do that around this time,” adding, “At some point, we have to let him go and let him do that job (managing Tesla).”
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