Since December, Tesla has lost about half of its market value, or $800 billion, due to the recently market selloff and its own struggling business. But its CEO Elon Musk remains the world’s wealthiest person, buoyed by his stake in SpaceX, which now accounts for nearly half of his his $307 billion fortune, more than Tesla. Musk owns 42 percent of SpaceX through a trust—a stake worth $136 billion, according to Bloomberg’s calculation.
Most recently valued at $350 billion following a December funding round, SpaceX is the most valuable privately held company in the U.S. The company manufactures rockets and satellites and makes money by launching missions for commercial and government clients, as well as through its Starlink satellite internet service. Starlink is estimated to generate $11.8 billion in revenue this year, including $3 billion in U.S. military contracts, according to market research firm Quilty Space.
Musk’s prominent role in Washington as head of the Department of Government Efficiency (DOGE) has helped reshape federal procurement in his favor. The Washington Post reported that President Trump is pushing the Federal Aviation Administration (FAA) to transfer its $2.4 billion broadband contract from Verizon (VZ) to SpaceX’s Starlink. The agency agreed to adopt Starlink following pressure from a member of Musk’s team, NBC News reported, citing a source familiar with the General Services Administration, which manages federal IT procurement.
Last month, Starlink announced a joint venture with India’s two largest telecommunications firms, Airtel and Reliance’s Jio Platforms, shortly after Musk met with Indian Prime Minister Narendra Modi. Following the meeting, Tesla also announced it would open showrooms and expand operations in India.
Musk’s deepening entanglement with the U.S. government hasn’t come without cost, however. In February, Canada’s Ontario province canceled its $68 million contract with Starlink, citing the Trump administration’s increasingly hostile posture toward Canada as the primary reason.
Elon Musk’s politics is hurting Tesla’s business
While SpaceX’s satellite and launch business continues to grow, Tesla is facing mounting challenges. Consumers are still buying electric vehicles—just not from Tesla.
In January, global EV sales rose 21 percent year-over-year, but Tesla’s sales dropped significantly in its largest markets. In Europe, Tesla’s sales fell 50 percent in January compared to the previous year, despite overall EV sales rising 20.5 percent. In Germany, where Tesla operates a Gigafactory, sales plunged 60 percent in the month, even as the broader EV market jumped 40 percent. Analysts have attributed much of the decline to Musk’s open support of the far-right AfD party in Germany, which has drawn widespread condemnation for its neo-Nazi affiliations.
In China, Tesla sales have fallen for five consecutive months, with a nearly 50 percent drop in February, according to the China Passenger Car Association. Tesla’s market share in China has slid to just 2.6 percent from 5.7 percent a year ago, as local EV giants like BYD continue to capture more of the market.
This week, President Trump held a press event on the South Lawn of the White House to defend Musk and express support for Tesla. The President condemned what he called “unjust calls for boycotts” of Musk’s companies. “[Musk has] been treated very unfairly by a very small group of people. And I just want people to know that he can’t be penalized for being a patriot,” Trump told reporters. He added that he would personally purchase a Tesla vehicle to demonstrate “confidence and support” for the billionaire entrepreneur.
