Tesla’s freefall costs Elon Musk his crown jewel, SpaceX overtakes as his most lucrative investment for the first time in 5 years as EV giant’s value tanks

Billionaire Elon Musk's most lucrative investment has changed, with SpaceX now being his most valuable asset for the first time in half a decade, as per a report. This is because Tesla's stock is still on the decline, with the electric vehicle maker not being able to find steam.

Elon Musk’s Most Valuable Asset

As per Forbes estimation, Musk's 42% holding in SpaceX is valued at $147 billion, about $20 billion above his Tesla stock, which stands at a 12% holding worth $97.8 billion, reported DailyBeast. This represents a turning point for the tycoon, whose car business had been the crown jewel for long.

SpaceX’s Growth vs Tesla’s Decline

While Tesla had a tough year in 2024, recording its second year in a row of decline in revenues, SpaceX recorded huge growth, as per DailyBeast. The revenue of the rocket firm increased by 51% to a projected $13.1 billion, as per Payload Space's calculation, reported Daily Beast.


SpaceX's fortunes are mainly driven by its subsidiary, Starlink, its satellite internet platform, which nearly doubled its top line to $8.2 billion, reported DailyBeast.

Musk’s Optimism Amid Tesla’s Struggles

Though Tesla's finances are in trouble, Musk is still upbeat about its long-term prospects, writing in a recent post on X (formerly Twitter), “It will be fine long-term,” quoted DailyBeast.

Tesla's Global Sales Slump

The cracks in Musk's empire are difficult to dismiss. The federal slashing initiated by Musk's Department of Government Efficiency (DOGE) has bitten Tesla hard, with sales falling for the first time globally, as per the report. European sales fell 45% last month, while in China it fell almost 50%, reported DailyBeast. In America, the sales declined 5%, the report added. But a new survey revealed that 63% of automobile buyers in the US would not even consider purchasing a Tesla, a 10% jump from last year, reported Wall Street Journal.

Musk Struggles with Juggling His Business Ventures

While Musk recently admitted that he is facing “difficulty” in handling his multiple businesses, as per DailyBeast. When in a Fox Business interview with Larry Kudlow, he was asked, “How are you running your other businesses?” Musk replied to that saying, “With great difficulty. Yeah, I mean...” as quoted by DailyBeast.

While SpaceX and Tesla combined are more than 80% of Musk's $329 billion fortune, he also owns stakes in other companies, as per the report. Musk's other businesses are, xAI, X Corp, Boring Company, and Neuralink, these add another $45 billion to his fortune, reported DailyBeast. At the same time, he's also heading DOGE under the Trump administration.

Dan Ives, managing director at Wedbush Securities, claimed that “In a nutshell the word ‘balance’ has been missing with Elon Musk and his ability to run Tesla as CEO....while instead focusing all of his energy and time driving his DOGE initiative,” as quoted by DailyBeast.

FAQs

How did SpaceX become more valuable than Tesla?
SpaceX’s growth, particularly through its subsidiary Starlink, has outpaced Tesla’s struggles, making it Musk’s most valuable asset, as per DailyBeast.

How much is Musk’s stake in SpaceX worth?
Musk’s 42% stake in SpaceX is valued at $147 billion, according to Forbes' estimation.