China matters a lot to Tesla as both a big customer base and a manufacturing center. These facts make Trump's tariff plans very troublesome for Musk personally.
When Trump raised taxes on Chinese goods, Tesla paid more to make cars, couldn't easily get parts, and had to charge customers higher prices. Many people who invest money noticed these problems between countries, which helped push Tesla stock prices down. This drop cost Musk about $7.1 billion of his wealth.
The situation might become worse if trade fights between America and China grow more serious. Tesla might struggle to find the raw materials needed for building cars. Such problems create uncertainty about how Tesla operates worldwide and put Musk's money at even greater risk.
Elon Musk works closely with Trump but faces negative effects from the same trade rules he supports. These taxes originally aimed to protect American companies from Chinese rivals. Instead, they backfired by making Tesla spend more money to operate and disrupting how they receive supplies.
Recent estimates from Forbes showed Elon Musk lost $7.1 billion on Tuesday alone, leaving him worth around $347.7 billion. His total losses since December 17, 2024, reached $116.3 billion, down from his peak value of $464 billion back then.
Tesla shares caused most of this financial pain. The stock closed at $272 on Tuesday—its lowest closing price since Election Day. The broader market suffered that day as well, with the S&P 500 index dropping over 1 percent to its lowest point of 2025 after Trump announced new tariffs against Canada, China, and Mexico.
When Trump raised taxes on Chinese goods, Tesla paid more to make cars, couldn't easily get parts, and had to charge customers higher prices. Many people who invest money noticed these problems between countries, which helped push Tesla stock prices down. This drop cost Musk about $7.1 billion of his wealth.
The situation might become worse if trade fights between America and China grow more serious. Tesla might struggle to find the raw materials needed for building cars. Such problems create uncertainty about how Tesla operates worldwide and put Musk's money at even greater risk.
Elon Musk works closely with Trump but faces negative effects from the same trade rules he supports. These taxes originally aimed to protect American companies from Chinese rivals. Instead, they backfired by making Tesla spend more money to operate and disrupting how they receive supplies.
Recent estimates from Forbes showed Elon Musk lost $7.1 billion on Tuesday alone, leaving him worth around $347.7 billion. His total losses since December 17, 2024, reached $116.3 billion, down from his peak value of $464 billion back then.
Tesla shares caused most of this financial pain. The stock closed at $272 on Tuesday—its lowest closing price since Election Day. The broader market suffered that day as well, with the S&P 500 index dropping over 1 percent to its lowest point of 2025 after Trump announced new tariffs against Canada, China, and Mexico.
