The world’s richest man, Elon Musk, has recently made Tesla lose its status as his most valuable asset due to a market downturn. For the first time in five years, Forbes reports that SpaceX has now become more valuable than Tesla. His stake in SpaceX is now worth $20 billion more than his Tesla stake, which is now worth $147 billion. Despite recent losses, Musk still holds the title of the richest individual in the world with a net worth of $323 billion. This has been due to a number of factors including a sales decline in Europe and other key markets. Musk has come under a lot of pressure after reports surfaced that he would be a part of Donald Trump’s administration, which would distract him. The result has been that the markets have become very uncertain and Tesla shares have dropped since December. Also, the pressure has not been helped by the fact that JPMorgan cut Tesla’s price target by 41% to $135, on concerns about declining vehicle deliveries. The downgrade is consistent with the institutional investor’s becoming more bearish on the name from a growth standpoint.
However, Tesla was not always in this position. In November 2024, following Trump’s reelection, Tesla stocks surged due to expectations that Musk’s connection with the administration would be beneficial to the company. That optimism has since faded, and now there is caution about Musk’s time and the market challenges that Tesla is facing.
On the other hand, SpaceX is still going strong and getting large contracts while expanding its commercial space operations. The shift in Musk’s asset value shows that SpaceX is growing in the aerospace industry while Tesla is facing tough market conditions.
