While Elon Musk’s electric car company Tesla has been taking massive hits in the stock market recently, his other companies have skyrocketed in value since the presidential election in November.
SpaceX, Neuralink the Boring Company and xAI soared upward by 45 percent collectively since Trump was reelected, according to secondary market trading platform Caplight.
Why It Matters
Tesla shares have been on the decline in recent months, losing about half of their stock value. However, with Musk at the helm of Trump’s new administration and running the Department of Government Efficiency (DOGE), his companies could benefit from Trump’s new policies.
Industrywide, the stock market has experienced major shakeups amid the uncertainty of DOGE and Trump’s imposed tariffs against Canada, Mexico and China.
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What To Know
Altogether, SpaceX, Neuralink, the Boring Company and xAI have grown 45 percent in stock value since November.
SpaceX is now valued at about $350 billion, making it the world’s most valuable private company, experts said. SpaceX climbed more than 50 percent, according to Caplight data, while artificial intelligence firm xAI shot up 110 percent.
Bloomberg reported in February that xAI would be raising $10 billion in a funding round at a $75 billion valuation.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The story of Elon Musk’s financial journey during the last few months is fascinating. Tesla had a massive surge following President Trump’s victory in November, then saw steep declines at the beginning of the year due to poor sales numbers and projections for future quarters, not to mention how Musk’s persona in the new administration may drive some potential buyers away. On the secondary market, his other companies haven’t seen as much whiplash, and I think that’s mostly due to the belief these entities could receive major government contracts in the coming months and don’t rely on traditional sales in the same way Tesla does.”
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: “We’re witnessing what I call the ‘Musk paradox’ in action. Public market skepticism versus private market exuberance. Tesla faces the spotlight of quarterly earnings, while SpaceX enjoys the luxury of long-term vision without daily scrutiny.”
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek of Tesla’s downfall: “Public sentiment has shifted. Many people no longer want to be associated with Musk’s brand. Some are not only selling their Teslas but are also actively boycotting the brand. While there may come a time when Tesla vehicles become so affordable that price outweighs perception, we’re not there yet.
“There are reports of Tesla drivers being profiled, and Musk’s increasing involvement in politics is further damaging the brand. It’s often said that two things can destroy a brand quickly: speaking about politics and religion. Musk has somehow done both—rapidly.”
What Happens Next
SpaceX is positioned for continued growth in the remainder of 2025, Ryan said. But Tesla’s recovery will depend on if the company can address its sales trends and reassure investors about its leadership.
“To me, the question isn’t whether Musk can run multiple companies. It’s whether Tesla investors believe he still prioritizes their interests over his private ventures,” Ryan said. “Perception becomes reality in the market.”
