Musk Loses $53.7 Billion in 2025, Yet Remains the World’s Richest Person

Tesla CEO Faces Significant Financial Setback Amidst Stock Decline and Expanding Ventures

Elon Musk, the CEO of Tesla and head of the government efficiency department (DOGE), has seen a massive drop in his net worth this year, with a staggering $53.7 billion wiped off his fortune. Despite this, Musk remains the world's wealthiest individual, maintaining a commanding lead over his closest rival, Mark Zuckerberg.

The significant reduction in Musk's wealth can be attributed to a sharp decline in Tesla’s stock price, which has dropped nearly 15% this year. Tesla, Musk's primary source of wealth, experienced a substantial downturn in stock value, particularly in the first few weeks of 2025. Bloomberg’s Billionaires Index highlighted that Musk lost almost $16 billion on February 11 alone, marking a 3.6% drop in his net worth on that day. Over the entire year, Musk's fortune has shrunk by approximately 12.4%, primarily driven by the poor performance of Tesla’s stock.

Tesla, which has been struggling to maintain its position in the electric vehicle (EV) market, saw its stock price plummet by over 16% in the past five trading days alone. Despite expectations that Musk’s ventures would thrive under President Trump’s second term, Tesla's stock has taken a severe hit, particularly after Trump’s inauguration, with a notable 23% drop in value. The company’s stock price, once at an all-time high of $480 per share in December 2024, is now down by around 32%, with February 11 marking a significant drop to $344.91 per share. However, there was some recovery on February 12, with a notable 5% surge in stock prices.

The reasons for the decline are manifold. Analysts point to increasing competition in the electric vehicle sector, particularly from Chinese automaker BYD, which has rapidly gained market share and even surpassed Tesla in autonomous driving technology. Additionally, BYD has already taken the top spot as the number one electric vehicle manufacturer, surpassing Tesla in global market dominance.

Musk’s personal ventures, too, have been a source of distraction. As the head of DOGE, Musk has been heavily involved in U.S. government matters, overseeing significant cost-cutting initiatives, including the elimination of international aid programs and a reduction in federal government departments, in line with the Trump administration’s fiscal policies. Musk is also pushing for a restructuring of agencies like the Consumer Financial Protection Bureau (CFPB) and the Department of Education. These initiatives have kept Musk extremely busy, even as they coincided with his private business ventures.

Musk’s commitment to advancing technology has not slowed down. He recently proposed a $97 billion offer to acquire OpenAI, the company behind ChatGPT, aiming to position himself as a leader in the artificial intelligence (AI) space. This acquisition would directly compete with his own AI startup, xAI, as he continues to dominate multiple industries, from space exploration with SpaceX to social media with X.

Despite these diversions and financial setbacks, Musk remains an influential figure globally. With a net worth of $379 billion, Musk retains a dominant position on the global wealth rankings, far surpassing Mark Zuckerberg, whose net worth stands at $253 billion. Although Tesla faces challenges, Musk's vast investments in various industries continue to solidify his place at the top of the financial world.