Elon Musk’s net worth has reportedly plummeted by $120 billion in the past two months, prompting financial experts to analyze the reasons behind the sharp decline.
The 52-year-old billionaire is involved in a wide array of ventures, spanning space exploration, electric vehicles, government advisory roles, social media, and more.
Thanks to the success of his diverse and highly profitable business endeavors, Musk, who was recently named Senior Advisor to the President of the United States, is recognized as the world’s wealthiest individual. According to the Bloomberg Billionaires Index, his net worth stands at $330 billion.
This places him far ahead of other billionaires like Meta founder Mark Zuckerberg ($221 billion), Amazon founder Jeff Bezos ($220 billion), LVMH founder Bernard Arnault ($184 billion), and Oracle Corporation founder Larry Ellison ($176 billion).
Elon Musk’s net worth has taken a tumble in the last 10 weeks
However, Musk’s net worth has experienced a significant decline, shrinking by approximately 24 percent over the past ten weeks, as reported by *Business Insider*.
The primary reason for this financial dip appears to be the drop in Tesla’s share price, which has fallen around 35 percent this year, from about $404 to $263, according to *Entrepreneur*. This decline has significantly impacted Musk’s overall wealth.
The sharp decline in Musk’s net worth may also be linked to Tesla’s market value plummeting by over $400 billion.
Another factor contributing to his reduced wealth is the significant drop in U.S. sales of Tesla vehicles, which fell by 16 percent between December 2024 and January 2025, according to Cox Automotive.
Additionally, investors have reportedly been offloading Tesla stock for various reasons, including concerns over Musk’s close ties with U.S. President Donald Trump.
In July 2024, Musk publicly endorsed the 78-year-old president and invested more than $250 million in campaigning for Trump’s re-election. The funds were primarily used for direct mail, canvassing, and phone calls, as reported by *ABC News*. Musk also leveraged X, the social media platform he acquired in October 2022 for $44 billion, to rally support for the Republican party.
Following Trump’s inauguration on January 20, Musk was appointed head of the Department of Government Efficiency (DOGE), where he was tasked with cutting federal spending by $1 trillion and addressing the U.S. federal government debt, which stands at $36.56 trillion.
Experts suggest that Musk’s close association with the White House has had a detrimental impact on his role at Tesla, further contributing to the challenges facing the company.
Experts believe that the tech titan’s proximity to the White House has negatively impacted his work with Tesla.
US sales of Tesla vehicles have also dropped by 16 percent
This has led some experts to express concerns about how Musk’s government responsibilities might impact his effectiveness as Tesla’s CEO in the future.
“While the strong partnership between Musk, DOGE, and Trump has raised significant brand concerns for Tesla, we estimate that less than five percent of Tesla’s global sales are at risk due to these issues,” Wedbush analyst Dan Ives stated, as reported by *Barrons*.
He added, “We expect Musk will find a better balance between his roles at DOGE and his responsibilities at Tesla and SpaceX throughout 2025.”
Musk took over as Tesla’s CEO in October 2008, replacing Ze’ev Drori, who stepped down as vice-chairman and left the company two months later. Under Musk’s leadership, Tesla has introduced several popular electric vehicles, including the Cybertruck, which entered production in November 2023.
In the U.S., the price of a top-tier Cybertruck ranges from $74,000 to $94,000, according to *Car Wow*.
