Despite Tesla Struggles, SpaceX Buoys Elon Musk as World’s Richest Man

In recent months, Tesla (TSLA) has seen a significant decline in its market value, losing around $800 billion. This drop is attributed to both the overall market downturn and challenges within the company itself. However, CEO Elon Musk remains the wealthiest person globally, thanks in large part to his stake in SpaceX, which now makes up a substantial portion of his $307 billion fortune, surpassing even Tesla. Musk’s ownership of 42 percent of SpaceX through a trust is valued at $136 billion, according to Bloomberg.

SpaceX, most recently valued at $350 billion after a funding round in December, is now the most valuable privately held company in the U.S. The company’s primary focus is on manufacturing rockets and satellites, generating revenue through launching missions for various clients and operating its Starlink satellite internet service. Starlink is anticipated to bring in $11.8 billion in revenue this year, including $3 billion from U.S. military contracts.

Musk’s influence extends to Washington, where his role as head of the Department of Government Efficiency (DOGE) has reshaped federal procurement practices in favor of his ventures. Reports indicate that President Trump is advocating for the FAA to shift its $2.4 billion broadband contract from Verizon to SpaceX’s Starlink. Following pressure from Musk’s team, the agency agreed to adopt Starlink, as confirmed by a source familiar with the General Services Administration.

In a strategic move, Starlink recently announced a partnership with India’s leading telecommunications companies, Airtel and Reliance’s Jio Platforms, shortly after Musk’s meeting with Indian Prime Minister Narendra Modi. Concurrently, Tesla revealed plans to expand its presence in India, including opening showrooms.

Despite these successes, Musk’s association with the U.S. government has not been without setbacks. For instance, Ontario province in Canada canceled a $68 million contract with Starlink, citing strained relations with the Trump administration.

While SpaceX thrives, Tesla faces challenges. Global electric vehicle sales are on the rise, but Tesla’s sales have declined in key markets. Factors such as Musk’s political affiliations, particularly his support for the far-right AfD party in Germany, have contributed to decreased sales in Europe. In China, Tesla has experienced a five-month decline in sales, losing market share to local competitors.

In a show of support, President Trump defended Musk and Tesla at a recent press event, denouncing calls for boycotts against Musk’s companies. Trump expressed confidence in Musk’s entrepreneurial endeavors and pledged to personally purchase a Tesla vehicle in solidarity.