Forbes - Tesla Is No Longer Elon Musk’s Most Valuable Asset
Elon Musk's financial landscape has shifted, with SpaceX becoming his most valuable asset, surpassing Tesla for the first time in five years. This change occurred after Tesla's stock faced significant challenges, including a 50% drop due to concerns over Musk's ability to manage Tesla while focusing on governmental roles. Tesla's revenue growth was a mere 1% in 2024, with net income declining for the second consecutive year. Meanwhile, SpaceX's revenue grew by 51% to $13.1 billion, driven by its satellite launches and the Starlink internet service, which nearly doubled its revenue to $8.2 billion. Musk's 42% stake in SpaceX is now valued at $147 billion, $20 billion more than his Tesla holdings. Despite these shifts, Musk's net worth remains heavily tied to both companies, which constitute over 80% of his $329 billion fortune.
Key Points:
- SpaceX is now Musk's most valuable asset, valued at $147 billion, surpassing Tesla.
- Tesla's stock dropped 50% due to concerns over Musk's dual roles and weak financial performance.
- SpaceX's revenue increased by 51% in 2024, with significant contributions from Starlink.
- Musk's net worth is $329 billion, with over 80% tied to SpaceX and Tesla.
- Musk's other ventures, including xAI and Neuralink, add $45 billion to his fortune.
Details:
1. 🚀 Elon Musk's Financial Ascendancy and Initial Challenges
1.1. Tesla's Valuation Shift
1.2. Political Financial Support
1.3. Rapid Financial Recovery
1.4. Milestone Wealth Achievement
1.5. Valuation Growth of Musk's Companies
1.6. Tesla's Market Capitalization Peak
2. 📉 Tesla's Market Struggles Amid Musk's Government Role
2.1. Tesla's Market Struggles
2.2. Implications of Musk's Government Role
3. 📊 Financial Decline and Global Sales Issues for Tesla
- Tesla's revenue increased by only 1% to $97.7 billion in 2024, while net income fell for the second consecutive year to $8.4 billion, indicating a need for strategic financial adjustments.
- Significant declines in Tesla car sales were reported in the first two months of 2025 in Germany, China, and Australia, suggesting potential market-specific challenges.
- JP Morgan has cut their global deliveries forecast for Tesla for Q1 2025 to the lowest level since Q3 2022, highlighting concerns about Tesla's production and delivery capabilities.
- Protests against Tesla and Elon Musk have erupted at Tesla dealerships across the US, possibly affecting brand perception and customer loyalty.
- Elon Musk launched an appeal against a Delaware ruling from January 2024 that voided his record-breaking Tesla pay package, which could impact leadership and investor confidence.
4. ⚖️ Legal Hurdles and Their Impact on Musk's Wealth
- Forbes has discounted the stock options from Musk's pay package, originally valued at $65.3 billion, by 50% due to ongoing legal disputes, specifically questioning the fairness of these options amidst conflicts of interest.
- Musk's current stake in Tesla is valued at $97.8 billion, excluding the contested stock options, indicating the substantial impact of these legal challenges on his reported wealth.
- A significant portion of Musk's Tesla shares are pledged against personal loans totaling up to $3.5 billion, highlighting potential liquidity issues if the legal outcomes are unfavorable.
- The legal ruling emphasized Musk's control over Tesla's board and the fairness of his compensation package, which is under scrutiny due to perceived conflicts of interest.