Elon Musk's wealth declined by 25% during Donald Trump's second term.
Elon Musk's Fortune Tumbles Amid Controversies and Market Challenges
It looks like billionaire Elon Musk has taken a hit, losing a cool $113 billion from his fortune, according to recent reports. Bloomberg points the finger at his allegiances with former US President Donald Trump and his appointment as head of DOGE as the main culprits.
A Washington Post-ABC News-Ipsos poll found that a stunning 57% of Americans aren't too pleased with Musk's activities. This displeasure doesn't just stop at the common folk, as the US administration and Congress have also criticized his work.
A source from Bloomberg revealed that Musk and White House chief of staff Susan Rice have been meeting several times a week to keep her updated on his actions. Despite this, Musk's special government employee status remains unchanged, another agency source confirmed.
Musk's company, Tesla, has been taking the biggest beating since the start of the year. Its shares have plummeted by 33%, causing a staggering $448.3 billion loss in market value since January 17. Tesla's net profit dropped by an alarming 71% in both the fourth quarter of 2024 and the first quarter of 2025.
In a bid to address the downturn, Musk vowed to reduce his involvement with DOGE and spend less time on it. Despite the dramatic loss, Musk still sits comfortably atop the Billionaire Index as the world's wealthiest individual, with an estimated net worth of $335 billion.
Here's a closer look at the factors contributing to Musk's wealth decline:
- Tesla Stock Drop: Tesla's stock value has declined by approximately 40% YTD (as of April 2025). This decline, which has erased around $150 billion from Musk's net worth since December 2024, can be attributed to regulatory scrutiny over autonomous driving safety and rising competition in the EV market.
- Political Backlash: Musk's alignment with Trump-era policies and involvement with the "DOGE office" initiative have alienated customers and investors. Additionally, new tariffs announced in April 2025 (10% on imports, 25% on foreign cars) have accelerated Tesla's stock decline, causing a $11 billion drop in Musk's net worth within a week.
- Market Saturation: Used Tesla prices have fallen 10% YoY, while Cybertruck resale values have dropped by 50%. The prices of Model Y and Model 3 have dropped by 13% and 10% respectively, indicating weakening demand.
Financially, Tesla's revenue dropped by 20% last quarter, and deliveries missed expectations in Q1 2025. The brand's trailing 12-month net income fell 57% from its 2023 peak, indicating Tesla's struggles have directly impacted Musk's fortune.
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- The decrease in Tesla's shares, led by a drop in demand and regulatory scrutiny, has resulted in a staggering 33% plummet since the beginning of 2025, contributing to Elon Musk's $448.3 billion loss in market value.
- Politically, Elon Musk's association with Trump-era policies and the "DOGE office" initiative have led to customer and investor alienation, compounding his wealth decline. This was further aggravated by new tariffs announced in April 2025.
- As a response to the downturn, Elon Musk has mentioned his intent to reduce his involvement with DOGE and spend less time on it, hinting at a possible shift in his business focus.
- Financially, Tesla's revenue dropped by 20% in the last quarter, and its deliveries missed expectations in Q1 2025, demonstrating the company's continuing struggles that have a direct impact on Elon Musk's wealth.
- Despite the decreasing trends, Elon Musk continues to lead the Billionaire Index as the world's wealthiest individual, boasting an estimated net worth of $335 billion, indicating that his fortune is not entirely dependent on Tesla's performance.
