It’s been a financial explosion of rare proportions that has once again thrust Elon Musk into the spotlight. In just 24 hours, the Tesla and SpaceX founder’s fortune increased by $40 billion, according to the latest data released this morning. This huge financial leap comes on the heels of the historic announcement of an agreement between the United States and China to mutually reduce their tariffs to historically low levels.
An unexpected trade agreement
This unexpected diplomatic shift comes after years of trade tensions between the two superpowers. In a joint statement released by the governments of the United States and China, both countries agreed to gradually reduce customs duties on a number of key products, including those in the technology, automotive, and energy sectors.
This decision immediately cheered global markets, triggering a rally in tech stocks. Tesla stock, in particular, saw a staggering increase of nearly 18% in just a few hours.
Musk, the big beneficiary of the agreement
For Elon Musk, this news is a real stroke of luck. Already ranked as one of the richest men in the world, the CEO of Tesla, SpaceX, Neuralink, and X (formerly Twitter) saw his wealth increase by $40 billion in one fell swoop.
This spectacular increase is directly related to Tesla’s market capitalization, which remains the crown jewel of Musk’s empire. Indeed, a reduction in tariffs on electric vehicles exported to China (and vice versa) paves the way for an explosion of sales in the world’s largest automotive market.
Reaction of markets and analysts
Wall Street was quick to react. Stock indices had an exceptional day, driven by investor enthusiasm. The Nasdaq rose more than 3.5%, and the S&P 500 reached a new all-time high.
Analysts agree that this deal benefits not only Musk, but the entire global technology sector.
“It’s a key day for companies like Tesla, Apple, and Nvidia, which rely heavily on cross-border trading,” said Goldman Sachs analyst Sarah Kent.
Geopolitical implications
However, this agreement has not only generated happiness. Some experts question the true political motivations behind this gesture of cooperation between two strategic rivals. Others express concern about the repercussions on local industries, especially regarding competitiveness and dependence on globalized supply chains.
However, for Elon Musk, the timing is perfect. Already negotiating new contracts with Beijing for an expansion of the Gigafactory in China, this agreement gives him a significant economic and diplomatic advantage.
And now?
With this spectacular increase, Elon Musk is once again approaching the title of the richest man in the world, a position he has shared for several years with giants like Bernard Arnault and Jeff Bezos.
Analysts estimate that if the trend continues, Musk could add another $100 billion to his fortune by the end of the year. A scenario that seems increasingly possible as the China-US trade alliance strengthens.
One thing is certain: today’s tariff agreement has not only heated diplomatic relations, but it has also further heated Elon Musk’s already fiery portfolio.
