Elon Musk has seen his net worth shrink by $52 billion since the start of the year, yet he remains the world’s richest person by a significant margin, according to the Bloomberg Billionaires Index.
Tesla’s stock took another hit on Tuesday, dropping 8% before market close, continuing a downward trend of over 20% in the past month. The company’s market valuation has now fallen below $1 trillion for the first time since November 2024.
Despite the booming demand for electric vehicles, Tesla’s sales are struggling. The company saw a staggering 45% sales drop across Europe last month, according to the European Automobile Manufacturers’ Association. While Musk’s polarizing public image often sparks debate, it’s unclear if his politics are a major factor in Tesla’s decline. Instead, mounting competition—especially in China—and slowing demand growth in the U.S. appear to be driving the slump.
This marks a sharp shift in investor sentiment compared to November 2024, just after Donald Trump won the U.S. presidential election. At that time, Musk’s wealth soared to a record $347.8 billion, fueled by a Tesla stock rally. Investors anticipated that Musk’s influence in the Trump administration would usher in deregulation favorable to Tesla. By the end of November, Musk—Tesla’s largest individual shareholder—had gained roughly $83 billion since Election Day.
Musk’s close ties to Trump have propelled his ventures into the political spotlight. In addition to leading Tesla and SpaceX, and owning X, he oversees several other ventures, including Neuralink, xAI, and the Boring Company. His role as head of the Department of Government Efficiency (DOGE) has been particularly controversial, as he has spearheaded sweeping job cuts across federal agencies.
Despite his recent losses, Musk remains the wealthiest person on the planet. His net worth declined by $5.2 billion just last week, per the Bloomberg Billionaires Index, but he still stands at $380 billion—an astonishing $144 billion ahead of the world’s second-richest person, Meta CEO Mark Zuckerberg.
