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The billionaire's companies are suffering massive losses...
Since the beginning of January, Elon Musk has lost almost $100 billion, $96.5 billion to be exact, according to the Bloomberg Index updated on March 5. With a fortune of $336 billion, he remains the richest man in the world, more than $100 billion more than second-place Scrooge. Next comes Facebook founder Mark Zuckerberg, who with a personal fortune of $226 billion has surpassed Jeff Bezos (225 billion).
Tesla has lost a third of its value
Musk's impoverishment (on paper) is largely due to Tesla's Wall Street slump. Since the start of the year, shares have lost 33% of their value, falling to around $250 after reaching a high of more than $461 last year, while the market capitalization has fallen below $850 billion.
Car sales crisis in Europe
With shares down 30%, February was the second-worst month in the company's history. Although the decline came after Tesla's stock price had plunged more than 40% since Trump's election in early November. The latest decline has been attributed to concerns about Musk's political activities and a slump in sales in key markets such as Europe, the United States and China. In the Old Continent, Musk's electric cars suffered a 45% drop, while the EV market gained 15%, and some observers attributed the decline to Musk's stance in support of the AfD, Germany's far-right party.
Musk's (optimistic) predictions
Musk, however, responds to criticism and challenges with more overly optimistic predictions, estimating Tesla's earnings growth of 1,000% over the next five years, thanks to excellent business execution.
SpaceX, Starlink and conflicts of interest
Unlike electric cars, SpaceX, founded and led by Musk with the dream of bringing humans to Mars, seems to continue to strengthen its position in the aerospace sector. Since it is not a listed company, valuations are more complex and the most recent figures date back to last December, when SpaceX's valuation increased from $210 billion to $350 billion with a new round of financing. But the dynamism of its Starlink subsidiary makes one think that the group will continue to grow.
Contract with Verizon
The Federal Aviation Administration (FAA), for example, is considering ending its $2.4 billion contract with Verizon and instead handing it over to Elon Musk’s SpaceX, according to the Washington Post. The contract, which began in 2023, would help the FAA improve the platform that air traffic control structures use to communicate with each other. Earlier this week, the FAA confirmed that Musk has approved the delivery of 4,000 Starlink satellite communications terminals to the regulator and that he is testing one in New Jersey and one in Alaska.
Conflicts of interest
Musk's new political role, with his official entry into the Trump administration as head of the Department of Government Efficiency (DoGE), an agency created to reduce federal spending and improve government efficiency, however, also amplifies his conflicts of interest.
Starlink has signed, among other things, numerous contracts with the Pentagon to provide satellite communications for military purposes, especially in conflict zones such as Ukraine. Space X, on the other hand, is the chosen launcher so far for NASA missions, where it competes with Jeff Bezos. It is a mix of economic interests that do not go well with a prominent political role such as that embodied today by the South African entrepreneur alongside President Trump. / Adapted from “Corriere Della Sera”
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