Musk’s net worth drops almost $30 billion as Doge drives market unease
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Mr Elon Musk has spearheaded the effort to cut government spending through the Department of Government Efficiency.
PHOTO: AFP
NEW YORK – Mr Elon Musk’s net worth fell by US$22.2 billion (S$29.7 billion) on Feb 25 – his fourth-largest one-day loss – as stock markets faltered on scepticism about potential tariffs and ongoing federal cost-cutting efforts.
Tesla, which makes up more than half of Mr Musk’s fortune, was particularly hard hit after reports that its sales in Europe – where Mr Musk’s favourability has tumbled as he inserted himself into domestic politics – plunged by almost half in January.
Shares of the electric-car maker fell by 8.4 per cent in New York, sending its market value below US$1 trillion for the first time since Nov 7, 2024.
The Trump administration’s most prominent policies – including federal budget cuts and tariffs – have not yet generated the booming stock market the President promised on the campaign trail.
The S&P 500 Index has dropped 3.1 per cent over the previous four trading days, and the Magnificent 7 Index, which tracks seven megacap tech companies, tumbled into a correction on Feb 25.
Mr Musk has spearheaded the effort to cut government spending through the Department of Government Efficiency (Doge).
Its website shows the department has saved an estimated US$65 billion, or slightly less than 1 per cent of the 2024 federal budget, though data shows less.
Those efforts have roiled Washington, sparking over a dozen lawsuits and leaving federal workers unclear about their job security.
Earlier on Feb 25, 21 Doge workers resigned, saying in a joint letter that they would no longer “dismantle critical public services”.
President Donald Trump’s renewed commitment to enact tariffs on Canada and Mexico and reciprocal tariffs on other trading partners also contributed to the market sell-off.
US inflation expectations over the coming year increased to the highest in almost two years, while consumer confidence fell in February by the most since August 2021.
Even with Feb 25’s decline to a net worth of US$358 billion, Mr Musk is still about US$100 billion richer than he was before Mr Trump won the election in November 2024, according to the Bloomberg Billionaires Index.
Thanks to record-high funding rounds for his private companies and a blistering Tesla rally that saw it reach a record before its recent sell-off, Mr Musk’s net worth reached an all-time high of US$486.4 billion on Dec 17. BLOOMBERG
