First came the good news. Then came the bad news. Tesla Inc.’s (NASDAQ: TSLA) second-quarter deliveries fell 13.5% to 384,122. Investors looked at the number and believed this was the bottom. The net of the two opinions drove Tesla’s shares up 5% to $317. They are still down 22% for the year. Musk owns 13% of Tesla’s shares.
The increase in Tesla’s share price also lifted Elon Musk’s net worth up by $10 billion, yet it has declined by 71% so far in 2025.
One reason that Musk’s wealth has not fallen further is that he has convinced many on Wall Street that Tesla is becoming a robotics and artificial (AI) company. The first major sign of this, Musk argues, is the new self-driving features highlighted in Tesla’s tests of the program in Austin, Texas. It is still too early to tell how well the system works. What is not too early to know is that he has competition. The most advanced of these is Alphabet’s Waymo, which has added 10 new test cities this year.
What Musk has been unable to dodge is double-digit percentage sales drops across most of Europe. Additionally, Tesla faces stiff competition in China from local manufacturing.
Musk has hurt Tesla sales by his alliance with President Trump, a move toward conservative politics, and criticism of some European politicians.
Other Musk Holdings
Other Musk holdings have helped his overall wealth. The largest of these is the most successful rocket maker in the world. SpaceX virtually controls the U.S. rocket business and is the leader in the industry worldwide. It has established itself as the preeminent rocket launch provider, lofting satellites, cargo, and people to space for NASA, the Pentagon, and commercial partners. It is building out a large network of Starlink satellites providing internet service. Some observers believe Musk’s faltering relationship with the president could hurt him as he tries to get additional business from the U.S. government.
Musk owns 42% of SpaceX and has 79% of the company’s voting shares. He can make decisions about SpaceX without challenge. SpaceX was recently valued at $350 billion.
Among Musk’s other holdings, the most valuable may eventually be xAI, a major rival to OpenAI in the race to control the future of AI. xAI recently raised $6 billion, which puts its value at between $40 billion and $50 billion. Musk owns over half of xAI. The valuation of OpenAI recently hit $157 billion. Musk recently merged xAI with social media company X. The value of these combined is $100 billion.
Musk also owns parts of several other companies, including implantable brain-computer interface operation Neuralink.
Wall Street Price Prediction: Tesla’s Share Price Forecast for 2025
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