As Tesla’s stock declines more than 40%, Elon Musk is now officially $116 billion poorer than he was at his peak.

OVERLINE As shares of Elon Musk’s auto firm, Tesla, plummet, the world’s richest man, who also serves as President Donald Trump’s chief of cost-cutting, saw a significant decline in his net worth due to the recent stock market downturn.

A STUNNING FACT :

In comparison to Musk’s $116 billion loss, Microsoft cofounder Bill Gates, who is ranked 13th in the world’s wealth rankings, is estimated to have a net worth of $108.1 billion. Mukesh Ambani of India is the richest person in Asia, with a fortune of $85.6 billion.

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KEY BACKGROUND:

Like other American automakers,Tesla depends on imports from Canada to manufacture its cars,and China is the second-largest market for its electric vehicles, making it especially vulnerable to tariffs.Given that Tesla is “still very reliant on parts from across the world for all our businesses,” tariffs “will have an impact on our business and profitability,” Vaibhav Taneja,the company’s chief financial officer,warned in January.

LARGE NUMBER 8%.That represents a small portion of the 91% gain that Tesla’s stock saw through December 17 and the amount that it increased from Election Day to Tuesday. Wall Street predicted that Musk’s over $300 million donation to Trump and the GOP’s election campaign would result in a significant victory for Tesla,which would particularly profit from less regulation for its self-driving projects.This led to Tesla’s immediate post-election spike. Due in part to increased values for his private businesses SpaceX and xAI, Musk is still $83.3 billion richer than he was on Election Day.