Elon Musk, once soaring as the world’s richest person, has seen his net worth tumble below $400 billion in 2025 due to a steep drop in Tesla’s stock. The electric vehicle giant’s shares have plummeted by 27% since December, shaking investor confidence and putting Musk’s fortune at risk.
Tesla Stock Plunge Slashes Musk’s Wealth
Tesla’s stock collapse has been brutal. After peaking at $486.4 billion in December, Musk’s wealth has dropped nearly $90 billion in just two months. The billionaire’s fortune, largely tied to Tesla shares and options, has taken a significant hit as sales decline and investor skepticism grows.
Tesla Faces Declining Sales in Key Markets
Tesla’s troubles extend beyond Wall Street. In Germany, one of its key markets, deliveries have fallen by a staggering 59%. China, another crucial region, recorded an 11.5% sales drop as competitors like BYD gain ground. Despite an overall increase in EV demand in Europe, Tesla’s numbers continue to slide, raising concerns about the company’s future.
Musk’s Political Moves Fail to Reassure Investors
Musk has been actively involved in politics, closely aligning himself with President Donald Trump’s administration. As the head of the Department of Government Efficiency (DOGE), he has been pushing for aggressive cost-cutting measures in government. However, these moves have done little to boost Tesla’s appeal among investors. Many believe Musk’s political entanglements may be damaging Tesla’s brand and consumer trust.
Will Federal Policies Rescue Tesla?
Some analysts speculate that the Trump administration could introduce policies to support Tesla, such as increased tariffs on Chinese EVs or revised electric vehicle subsidies. However, with economic uncertainty looming and no clear signals from Washington, Tesla’s future remains unpredictable.
Tesla’s Stock Rollercoaster Continues
Tesla’s share price remains volatile, with recent declines marking the worst trading stretch since October. The stock fell 11% last week alone, further denting Musk’s wealth. As Tesla navigates fierce global competition and shifting consumer sentiment, the company’s ability to regain investor confidence will be crucial in the months ahead.
Final Thoughts
Elon Musk’s empire has weathered ups and downs before, but Tesla’s recent struggles highlight growing challenges. With political affiliations influencing investor sentiment and market conditions tightening, all eyes are on Musk to steer Tesla through these turbulent times. Will the EV giant bounce back, or is this the beginning of a long-term decline?