Elon Musk suffered the most in the world from Trump’s trade wars
6 March 14:56
The latest stock market slump has hit Elon Musk, the world’s richest man, who is also President Donald Trump’s chief cost-cutting adviser, hard. This happened against the backdrop of a significant decline in the value of shares in his company Tesla, "Komersant Ukrainian" reports, citing Forbes.
According to Forbes’ real-time data, on Tuesday, Musk’s fortune decreased by $7.1 billion to $347.7 billion. In total, his wealth has already decreased by $116.3 billion since the record high of $464 billion, which was recorded on December 17, when Tesla shares reached a historic high of $480 per share.
However, after that, Tesla began to lose ground in the market: on Tuesday, its shares closed at $272, the lowest level since the US election day.
The reason for Tesla’s fall was the overall negative dynamics of the stock market: the S&P 500 index fell by more than 1%, updating its annual low. This happened after the Trump administration imposed new tariffs on Canada, China, and Mexico.
The level of Musk’s losses compared to other billionaires
To realize the scale of Musk’s losses, it is worth noting that they exceed the total wealth of the 13th richest person in the world, Microsoft co-founder Bill Gates, who has $108.1 billion. The wealth of Asia’s richest entrepreneur, Indian businessman Mukesh Ambani, is estimated at $85.6 billion, which is also significantly less than the amount Musk has lost since the peak of Tesla’s stock.
Tesla’s vulnerability to customs policy
Tesla is particularly sensitive to customs tariffs, as China is the second largest market for its electric vehicles. In addition, Tesla, like other American automakers, is heavily dependent on imported components from Canada.
Tesla’s Chief Financial Officer Vaibhav Taneja warned back in January that the new duties would have an impact on the company’s business and profitability, as
“Tesla is still heavily dependent on sourcing parts from around the world for all of its operations.”
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Dynamics of Tesla shares after the election
It is worth noting that despite a significant drop, Tesla shares are still 8% higher than on Election Day. However, this is significantly less than the rapid 91 percent growth that was observed before December 17.
After the election, investors expected that Musk’s generous donations to Trump’s campaign and the Republican Party – nearly $300 million – would bring significant benefits to the company, especially through possible relaxation of regulations in the field of self-driving technologies.
Despite the losses, Musk is still $83.3 billion richer than on Election Day. This is partly due to the increased valuation of his private companies, including SpaceX and xAI.
Elon Musk is a visionary entrepreneur and a lover of Russia
Elon Musk is one of the most influential entrepreneurs of our time, the founder and CEO of many innovative companies such as Tesla, SpaceX, Neuralink, and Boring Company. He was born on June 28, 1971 in Pretoria, South Africa. After moving to the United States, he became a pioneer in the field of electric vehicles, space technology, and artificial intelligence. Musk is often in the spotlight for his ambitious goals, including the colonization of Mars, the development of renewable energy, and the creation of neurocomputer interfaces.
Musk is also known for his active stance on social media, where he often posts controversial statements. In 2022, he acquired the Twitter platform, which he later renamed X. Musk takes a libertarian stance on Internet regulation and freedom of speech, opposing government interference in the activities of tech giants.
Musk plays a prominent role in the context of the Russian-Ukrainian war. His company SpaceX provided the Armed Forces of Ukraine with access to Starlink satellite Internet for three years of full-scale war, which provided critical communications at the front. Recently, however, Ukraine has been actively looking for a replacement for this technology, as Musk’s public statements and position no longer inspire confidence. Recently, Elon Musk was accused of secret contacts with Putin, and he ridiculed Zelenskyy’s statement about Ukraine’s independence. Today, Musk is an active supporter of Trump’s pro-Kremlin policies. He calls Ukrainian President Volodymyr Zelenskyy a dictator and an extortionist from the United States and opposes any assistance to Ukraine in the war with Russia.
Trump’s trade wars
Donald Trump’s administration has imposed trade restrictions on three of the US’s largest trading partners – Canada, Mexico, and China.
These measures have caused concern among American companies that depend on metal imports from Canada and Mexico. They are expected to look for alternative sources of supply, in particular in the Middle East, India, Chile, and Peru, which could lead to higher prices for aluminum and copper in the United States.
In addition, Canadian consumers have responded to the imposition of duties by boycotting American goods, canceling trips to the United States and refusing to buy American alcohol.
Economists warn that such trade disputes could slow global economic growth and cause inflation. Stock markets in the Gulf countries earlier reacted with a decline due to fears of a possible trade conflict. The cryptocurrency market also collapsed earlier.
