Elon Musk’s Net Worth Takes $15B Hit After Forming New Political Party

Elon Musk’s net worth has taken a $15.3 billion hit after the Tesla CEO announced he was to form a new political party.

The news sent ripples through financial markets and spooked investors concerned about Musk’s political ambitions and possible implications for Tesla’s brand and business operations.

Why It Matters

Musk, the richest man in the world, has often used his position to sway policy and markets, and this latest foray into politics comes amid growing tensions between him and President Donald Trump.

What To Know

On Saturday, Musk announced he was forming a new political party called the “America Party,” and on Monday shares in Tesla tumbled 6.8 percent.

Stock in the EV giant closed at $293.94, with the company losing more than $79 billion in total market value.

Much of Musk’s wealth is tied up in his stake in Tesla, which is now worth about $121 billion. His overall net worth is now around $346 billion, down from $361 billion the previous day, according to the Bloomberg Billionaires Index.

Investors previously expressed concern about Musk’s priorities, with Tesla shareholders calling on Musk to work at least 40 hours a week at the company in May.

The formation of the America Party comes after Musk—who supported Trump during the 2024 presidential election campaign and who the president put in charge of the Department of Government Efficiency—fell out with Trump over the One Big Beautiful Bill Act.

The recent spending bill is projected to increase the U.S. deficit by over $3 trillion in the next decade. The legislation has been criticized by Musk for raising the debt ceiling and rolling back incentives for electric vehicle manufacturers and energy transition.

Trump has since rebuked Musk and his political ambitions, calling the formation of the America Party “ridiculous” and stating, “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” in a post on Truth Social.

While the America Party aims to disrupt the traditional political order, history shows little success for independent and third-party groups in U.S. presidential elections. Previous attempts by the Libertarian, Green, and People’s Parties have failed to break through against entrenched Republican and Democratic dominance.

What People Are Saying

Dan Ives, an analyst at Wedbush Securities, told The Guardian: “Very simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.”

Ivana Delevska, founder of Spear Invest, recently sold off Tesla shares, according to Axios, and is reported as writing: “While the opportunity is outsized the risks are very significant as well…While the reward potential is clearly here the risks are significant as well.”

Jed Dorsheimer, an analyst at William Blair, wrote in a research note cited by Axios: “We expect that investors are growing tired of the distraction at a point when the business needs Musk’s attention the most and only see downside from his dip back into politics.”

What Happens Next

Future actions by Musk regarding the official registration of the party remain unclear. Investors and observers will continue to monitor the impact of Musk’s political foray on Tesla’s stock and his role as CEO.