Tesla (TSLA) shares tumbled nearly 7%, wiping $15 billion off CEO Elon Musk’s net worth in a single day, according to the Bloomberg Billionaires Index. The sharp sell-off followed Musk’s launch of the America Party, which escalated his ongoing feud with President Donald Trump, adding political volatility to Tesla’s market woes. Year-to-date, TSLA stock has declined by over 27%.
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Musk’s Fortune Shrinks by $15B
Tesla shares continued their downward slide this year, most recently driven by the announcement of Musk’s new political party. The move came just days after President Donald Trump signed a major tax-and-spending package, which Musk criticized as damaging to innovation and the EV industry. In response, Trump dismissed Musk’s new party as “ridiculous” and threatened to reexamine federal contracts with Tesla and SpaceX. Amid the turmoil, Musk’s fortune dropped by $15 billion on Monday.
The sharp decline reflects growing investor unease over Musk’s deepening political involvement, especially his public clashes with Trump. Amid rising investor backlash, Tesla is also facing growing concerns on Wall Street, leading some analysts to downgrade the stock. Notably, William Blair’s five-star analyst Jed Dorsheimer cut his rating on TSLA from Buy to Hold, citing recent regulatory shifts and Musk’s renewed political involvement.
Meanwhile, Wedbush analyst Dan Ives, a longtime Tesla bull, warned that Musk’s latest political move could become a major distraction at a critical time for the company.
Musk Still Holds the Crown as World’s Richest
Musk may no longer be in Trump’s good graces, but he still holds the top spot on the Bloomberg Billionaires Index through the first half of 2025.
Year-to-date, Musk has lost $86.7 billion of his worth, largely due to Tesla’s ongoing stock slide. As of June 30, his net worth was $363 billion, down from $432 billion at the end of last year, when he gained $26.5 billion in one day after Trump’s election win. However, his political activity, once seen as a strength, is now shaking investor confidence and weighing heavily on Tesla shares.
What Is the Target Price for Tesla Stock?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buys, 13 Holds, and nine Sells assigned in the last three months. The average Tesla stock price target is $293.09, which is almost similar to the current level.
