Elon Musk’s Wealth Surges to $419 Billion Amid Tesla’s Struggles

May 26, 2025, New York— Elon Musk, the visionary behind Tesla, SpaceX, and xAI, has cemented his status as the world’s richest person with a net worth of $419 billion, according to Forbes’ real-time billionaire index. This marks a $170 billion increase since July 2024, driven by soaring valuations of SpaceX and xAI, even as Tesla grapples with a 20% stock decline since Donald Trump’s return to the White House. Musk’s political influence, strategic business moves, and federal support have fueled his financial ascent, though controversies and market challenges loom.

Political Bets Yield Big Returns

Musk’s endorsement of Donald Trump in July 2024 has proven a masterstroke. Since then, Tesla’s stock has climbed 35% overall, despite its recent 20% dip. SpaceX’s valuation has nearly doubled to $350 billion, while xAI Holdings, Musk’s AI and social media venture, tripled in value through a $113 billion merger. As the largest individual donor to Trump’s 2024 campaign with $290 million, Musk signaled a shift at the Qatar Economic Forum on May 24, 2025, saying, “I think I’ve done enough” for political contributions.

The payoff is clear: regulatory hurdles are fading, with the Justice Department dropping a SpaceX discrimination lawsuit, the Labor Department halting a Tesla hiring probe, and the National Labor Relations Board shelving a SpaceX employee dismissal case.

Federal Contracts and Global Reach

Musk’s empire is reaping federal and global rewards. SpaceX, with $16 billion in government contracts, including a $6 billion Pentagon deal in April 2025, is a top contender for Trump’s $175 billion “Golden Dome” missile defense initiative. Starlink, SpaceX’s satellite internet arm, is expanding rapidly, with U.S. diplomats reportedly pushing for faster regulatory approvals in Africa and Asia. Domestically, the FAA is testing Starlink for a potential aviation safety upgrade, which could integrate it into U.S. air traffic systems, per a May 25, 2025, Reuters report. These developments highlight Musk’s growing clout in shaping global and federal tech landscapes.

Did You Know?
Starlink’s network now connects over 4 million users worldwide, with recent expansions into remote African regions, bridging digital divides, per a SpaceX update from May 2025.

Tesla’s Troubles and Public Backlash

Not all is smooth sailing. Tesla’s global sales are slipping, partly due to Musk’s role in DOGE, the Department of Government Efficiency, which aims to streamline or eliminate federal agencies. Trump’s tariffs on Chinese imports have spiked Tesla’s supply chain costs, exacerbating its stock woes. Public perception is also souring, with a May 2025 Reuters/Ipsos poll revealing 58% of Americans view Musk unfavorably.

A House Democratic report from April 2025 raised alarms about Musk’s influence, arguing he’s shaping the government that regulates his companies, posing conflict-of-interest risks. Both Musk and Trump dismiss these claims, with Trump stating in February 2025, “If there’s conflict, we won’t let him get near it,” and Musk denying direct involvement in government dealings.

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Analysts See Bright Horizons

Despite challenges, analysts are bullish. Dan Ives of Wedbush Securities, in a May 25, 2025, statement, praised the “clearing regulatory spiderweb,” valuing Tesla’s AI and autonomous driving potential at $1 trillion. SpaceX’s aerospace dominance and xAI’s AI breakthroughs further solidify Musk’s financial fortress. As his ventures align with federal priorities, Musk’s wealth continues its meteoric rise.