Amid global economic fluctuations, Elon Musk, CEO of Tesla, experienced a decline in net worth by over $121 billion in 2025, marking the largest drop among the world's top 10 richest individuals, according to the Bloomberg Billionaires Index. Unlike other billionaires like Jeff Bezos, who lost $36.5 billion, and Mark Zuckerberg and Bill Gates with losses of $13.9 billion and $2.57 billion respectively, Musk's losses were significantly larger. As of market close on April 10, his wealth stood at $311 billion.
The steep decline in Musk's wealth is attributed to the sharp drop in Tesla's stock value, influenced by investor concerns over company performance and general market volatility. In just three days, the top ten richest individuals collectively lost $172 billion due to a major stock market downturn, with Musk alone accounting for $35 billion of these losses.
Despite these losses, Elon Musk remains the world's richest person. Most of his wealth is tied to major holdings in companies like Tesla, SpaceX, and others. His net worth had peaked at over $400 billion in December 2024 before this decline.
In addition to financial losses, Tesla faces other challenges such as attacks on its facilities including vandalism and break-ins. These incidents are believed to be linked to Musk's political activities and ties with the U.S. government. Some investors are worried that his involvement in political projects might negatively impact his leadership at Tesla.
Key factors contributing to the reduction in Musk's wealth include:
Firstly: Decline in Tesla Stock Performance
Tesla shares witnessed a significant drop due to investor fears over weak sales and profits, with orders falling by 70% in Germany and shipments declining by 49% in China. Panasonic (Tesla’s main battery supplier) also announced production cuts due to decreased demand for electric vehicles including Tesla.
Secondly: Decline in Electric Vehicle Sales
Tesla’s sales dropped by 13% in Q1 2025, affecting the company's revenue and stock value. Factory upgrades temporarily reduced production, further straining financial performance.
Thirdly: Political Repercussions
Musk’s role as head of U.S. Government Efficiency faced harsh criticism for allegedly neglecting Tesla management for political activities. Austerity policies he advocated led to opposition across Europe and the U.S.
Fourthly: Market Volatility and Company Reevaluation
Markets re-evaluated Tesla as a traditional car company rather than a high-margin tech firm, reducing its market value. Disappointing Q3 earnings reports resulted in significant losses.
Fifthly: Operational and Financial Pressures
Tesla faced challenges such as facility attacks and security risks along with Musk's comments on difficulties managing under these conditions.
Tesla’s downturn signals negative trends for electric vehicle manufacturers and tech companies within its supply chain (like battery and chip suppliers). This may lead to falling stock prices for competing or partner companies.
As Tesla links technology, energy, and transportation sectors together, it serves as a critical "connector" in global markets. Any disruption could create ripple effects on stock indices, investment flows, and even government policies supporting green transitions.
