Elon Musk faced a massive financial blow recently, losing $29 billion in just 24 hours—more than the GDP of some small nations. The primary cause? A 15% drop in Tesla’s stock, driven by rising competition, economic uncertainty, and political controversy.
Tesla’s performance in China also hurt investor confidence, with February sales from its Shanghai plant plummeting nearly 50%, the worst in over a year. Meanwhile, Musk’s involvement in politics, particularly his alignment with Donald Trump and joining the controversial Department of Government Efficiency (DOGE), sparked backlash and fears over Tesla’s brand image.
Despite the loss, Musk remains the world’s richest person, with a net worth of $301 billion. Still, the event highlights the volatility of tech wealth and raises concerns about Tesla’s ability to stay ahead in a fiercely competitive EV market.
To bounce back, Tesla must win back investor trust, especially in China, and show it can outpace rivals through innovation and strategy. Musk, no stranger to comebacks, may already be planning his next move—but the challenges ahead are real.