Elon Musk, the world’s richest person, has seen his net worth plunge by an astounding $120 billion in just a few weeks. The chief executive of Tesla, SpaceX and X (formerly Twitter), who now serves in a senior advisory position within the U.S. government, has witnessed his wealth decrease by approximately 25 percent since the start of 2025, according to an ET report.
Although maintaining his position as the world’s wealthiest individual with a net worth of $330 billion, Musk’s significant financial decline has attracted attention from industry analysts. The combination of Tesla’s declining share price, increasing scrutiny of his political associations, and diminishing consumer interest has prompted specialists to question the sustainability of his dominant market position, the report said.
It’s interesting to note that the majority of Elon Musk’s wealth reduction stems from Tesla’s performance. The company’s share value has declined by roughly 35 percent in the previous two months, resulting in a $400 billion reduction in market capitalisation, the ET report said. Several factors have contributed to this situation.
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A primary issue is Tesla’s declining sales performance, with U.S. electric vehicle sales showing a 16 percent reduction from December 2024 to January 2025. The company faces substantial challenges from emerging EV competitors and reduced demand in the premium electric vehicle sector.
Additionally, Musk’s increased political engagement has created uncertainty among investors, the report said. Following his substantial $250 million contribution to Donald Trump’s re-election efforts, Musk’s appointment as head of the newly established Department of Government Efficiency (DOGE) has generated mixed reactions.
Whilst his role focuses on reducing federal expenditure and addressing national debt, his association with the administration has affected Tesla’s appeal to certain consumers and investors.
Yet another important thing is that despite substantial financial setbacks, Musk has demonstrated remarkable resilience throughout his career. His previous experience with wealth fluctuations includes a notable decline of over $200 billion in 2022, yet he successfully regained his position as the globe’s wealthiest individual.
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Analysts suggest the current situation presents unique challenges. With his responsibilities spread across Tesla, SpaceX, X, and various political engagements, questions arise about his capacity to address Tesla’s ongoing difficulties. His governmental involvement potentially impacts his ability to concentrate on Tesla’s essential recovery process.
Wedbush analyst Dan Ives offered a balanced viewpoint: “We expect Musk will better balance his time between DOGE and Tesla/SpaceX over the course of 2025.”
Currently maintaining his position as the world’s wealthiest individual, Musk’s lead over competitors Jeff Bezos, Mark Zuckerberg, and Bernard Arnault continues to decrease.
