Tesla CEO Elon Musk’s net worth has plummeted by $52 billion this year.
Musk, who has become a prominent figure in U.S. President Donald Trump’s closest allies, has seen his net worth decline as Tesla’s stock price tumbled amid his increased political activities as head of the Government Efficiency Department (DOGE).
Nevertheless, Musk remains firmly atop the list of the world’s wealthiest individuals, far outpacing Meta Platforms CEO Mark Zuckerberg, the second-richest person.
On Wednesday, CNN Business reported that Musk’s net worth has decreased by $52 billion this year to $347.8 billion, citing the Bloomberg Billionaires Index.
This is lower than the asset valuation figure based on Forbes.
As of Wednesday, Forbes estimated Musk’s net worth at $360.4 billion, significantly higher than Zuckerberg’s $233.5 billion.
The Bloomberg Billionaires Index estimated Zuckerberg’s net worth at $203.8 billion, $144 billion less than Musk’s.
Musk’s net worth has decreased primarily due to the decline in Tesla’s stock value, which accounts for most of his wealth.
Tesla’s stock price fell below $300, plunging 3.3% to $292 in afternoon trading.
Tesla’s stock has dropped nearly 27% this year.
Musk’s aggressive political actions are being pointed out as the cause of the sharp decline in stock.
Tesla is facing backlash in Europe and other countries as a target of retaliation against Trump’s tariffs. In the U.S., it has lost support from its core consumer base of progressive buyers, clouding its performance outlook.
Since Trump’s inauguration on January 20, Tesla’s market capitalization has evaporated by over $400 billion, causing the company’s market value to fall below $1 trillion for the first time since November last year.
While Musk’s political activities overshadow Tesla’s stock price, there are growing concerns about more fundamental issues.
Tesla is losing ground in the market as it falls behind its competitors.
Last month, Tesla’s sales in Europe plummeted by 45% to 9,945 units compared to 2024, despite a 37% expansion in the European electric vehicle market during the same period.
Tesla also saw a 15% decrease in sales in China last month and an estimated 13% decrease in the U.S.
However, Musk and Tesla continue to benefit from the second Trump administration.
Despite this year’s sharp drop, Tesla’s stock price remains 16% higher than the closing price of $251.44 on Election Day, November 5, 2024. Musk’s net worth has also increased by approximately $83 billion since the election.
