Elon Musk’s wealth has taken a historic hit in 2025, with his fortune plummeting by over $126 billion since its peak of over $486 billion in December 2024. While he still retains the title of the world’s richest person, the staggering decline marks one of the most dramatic reversals of fortune in modern history.
The primary cause of the historic wealth loss is the sharp decline in Tesla’s stock, which accounts for a significant portion of Musk’s net worth. After reaching a peak market capitalization of over $1.5 trillion in December 2024, the stock has since lost nearly half its value. Analysts attribute the decline to several factors:
- Decreased Sales: Tesla’s vehicle sales in major markets like Germany and China have dropped significantly amid fierce competition from both traditional automakers and Chinese EV manufacturers.
- Political Involvement: Musk’s high-profile role as a senior advisor in the Trump administration’s Department of Government Efficiency (DOGE) has raised concerns among investors. Many worry that his political engagements are distracting him from his duties at Tesla and alienating a core customer base that is traditionally eco-conscious and politically liberal. A public feud with President Trump in June 2025 further triggered a sharp sell-off, with Musk’s wealth plunging by $34 billion in a single day.
- Company Fundamentals: Tesla’s net profits have also plummeted, with a double-digit revenue drop in the second quarter of 2025.
Despite these monumental losses, Musk has largely recovered in the last few months, with his wealth now standing at $429 billion, just shy of his January 1 fortune of $432 billion. This is due to a surge in Tesla’s stock after Musk announced a personal $1 billion stock purchase, and the rising valuation of SpaceX.
SpaceX, which has surpassed Tesla to become Musk’s most valuable asset, was valued at $400 billion in a July 2025 tender offer. The company’s strong performance, driven by its Starlink satellite internet service and successful rocket launches, has helped offset some of the losses from Tesla’s stock
