Elon Musk’s Net Worth Drops by $81 Billion in First Two Months
Elon Musk, the world’s richest individual, has witnessed a staggering decline in his net worth, dropping by approximately $90 billion since early February 2025. This significant decrease has brought his fortune down from a peak of $486 billion to around $351 billion, according to the Bloomberg Billionaires Index. The decline is attributed to various factors, including disappointing performance from his major holdings, particularly Tesla.
Declining Tesla Shares Impact Musk’s Wealth
Musk’s wealth is heavily tied to Tesla, which constitutes about 60% of his total assets. Since the beginning of 2025, Tesla’s shares have fallen by 13.4%, reflecting a 27% drop from their December peak. The automotive giant’s recent quarterly results fell short of market expectations, contributing to investor concerns. Tesla’s market value has now dipped below $1 trillion, ranking it behind companies like Berkshire Hathaway and Broadcom. Investor sentiment has shifted, particularly following disappointing sales figures and a decline in U.S. consumer demand for electric vehicles. Analysts suggest that the company’s valuation has been inflated for too long, and the current downturn may be more reflective of investor psychology than traditional valuation metrics. Steve Sosnick, chief strategist at Interactive Brokers, noted that finding a stable price point for Tesla shares is challenging under these circumstances.
SpaceX and Other Ventures Remain Strong
Despite the significant losses in his Tesla holdings, Musk’s other ventures continue to perform well. SpaceX, for instance, has achieved a valuation of nearly $350 billion, making it the most valuable startup globally. Musk controls approximately 42% of SpaceX through a trust, which translates to a stake worth around $136 billion. Additionally, Musk’s interests in xAI, The Boring Company, and Neuralink contribute to his overall wealth, valued at $22.6 billion, $3.33 billion, and $2.07 billion, respectively. His ownership in X Corp, which controls the social media platform X (formerly Twitter), has also seen a decline, with its value dropping by about 69% since Musk’s acquisition in 2022.
The Broader Impact of Musk’s Wealth Decline
The decline in Musk’s net worth has raised eyebrows in the business community, particularly as it comes amid his active involvement in various political and governmental roles. Critics argue that his focus on political matters may detract from his management of Tesla and other enterprises. Investors are increasingly concerned about the implications of Musk’s political engagements on his business interests. Despite the challenges, Musk remains the wealthiest person in the world, with Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos trailing behind with net worths of $236 billion and $232 billion, respectively. Musk’s diverse portfolio allows him to maintain his position, even as Tesla faces significant hurdles in the current market landscape.
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