Over the past few months, Tesla (TSLA) has faced a notable decrease in its market value, shedding approximately $800 billion. This drop is attributed to a combination of overall market trends and internal challenges within the company. Nonetheless, CEO Elon Musk remains the wealthiest individual globally, largely due to his ownership stake in SpaceX, which now accounts for a significant portion of his $307 billion fortune, surpassing even Tesla. Musk’s ownership of 42 percent of SpaceX through a trust is valued at $136 billion, as reported by Bloomberg.

SpaceX, which was most recently valued at $350 billion following a funding round in December, currently stands as the most valuable privately held company in the U.S. The company’s core focus lies in the production of rockets and satellites, with revenue streams stemming from launching missions for various clients and operating the Starlink satellite internet service. Starlink is projected to generate $11.8 billion in revenue this year, with $3 billion of that coming from U.S. military contracts.

Musk’s influence extends to Washington, where his leadership at the Department of Government Efficiency (DOGE) has led to significant changes in federal procurement practices that benefit his ventures. Reports suggest that President Trump is pushing for the FAA to transfer its $2.4 billion broadband contract from Verizon to SpaceX’s Starlink. Under pressure from Musk’s team, the agency has agreed to make the switch to Starlink, as confirmed by a source familiar with the General Services Administration.

In a strategic move, Starlink recently announced a partnership with major telecommunications companies in India, Airtel and Reliance’s Jio Platforms, following Musk’s meeting with Indian Prime Minister Narendra Modi. Simultaneously, Tesla disclosed plans to enhance its presence in India by opening showrooms.

Despite these achievements, Musk’s ties to the U.S. government have not been immune to challenges. For example, Ontario province in Canada terminated a $68 million contract with Starlink, citing strained relations with the Trump administration.

While SpaceX continues to flourish, Tesla is encountering obstacles. While global electric vehicle sales are increasing, Tesla’s sales have declined in key markets. Factors such as Musk’s political affiliations, including his support for the far-right AfD party in Germany, have contributed to decreased sales in Europe. In China, Tesla has experienced a five-month decline in sales, losing market share to local competitors.

In a gesture of support, President Trump recently defended Musk and Tesla at a press event, criticizing calls for boycotts against Musk’s companies. Trump expressed his confidence in Musk’s entrepreneurial ventures and pledged to personally purchase a Tesla vehicle in solidarity.