Elon Musk is losing money. A lot of it. His net worth has dropped below $400 billion for the first time this year. That’s nearly $90 billion gone in two months. The reason is Tesla’s stock is in freefall. The electric car company has lost 27% of its value since December.
Elon Musk, once the world’s richest man, had $486 billion in December 2024. Now, the number is shrinking fast. The fall of Tesla is the biggest reason behind it. The company faces slowing sales, tough competition from China’s BYD, and Musk’s growing political baggage.
Tesla’s Slump: The Numbers Don’t Lie
- Tesla’s year-over-year sales dropped for the first time in more than a decade.
- Registrations in France fell by 63% last month.
- Sales in Germany crashed 60%, even as the rest of the EV market recovered.
- BYD, the Chinese EV giant, is surging ahead, offering cheaper and better AI-driven vehicles.
Musk still owns about 60% of his fortune in Tesla stock and options. The rest? His 42% stake in SpaceX, which is still valued at $136 billion. But Tesla’s struggles are hitting him hard.
Musk’s Political Baggage: A Growing Problem?
Musk has never been shy about his opinions. But now, his political involvement might be hurting his brand.
- He’s closely linked to Donald Trump and has helped with government agency firings.
- His favorability is sinking. A recent poll found Tesla’s net favorability at just 3%, near its lowest point ever.
- Some analysts believe his politics are now driving away customers.
“Tesla’s biggest challenge in 2025 isn’t technology—it’s perception,” said Jacob Falkencrone, an investment strategist at Saxo Bank.
Tesla Stock: A Roller Coaster Ride
Tesla’s stock price is wild. Investors don’t know whether to buy or sell.
- In January, Tesla shares surged on hopes that a Trump administration would support American EVs and impose tariffs on China.
- But Musk’s failed bid to buy OpenAI for $97.4 billion sent Tesla’s stock tumbling.
- Then, rumors of OpenAI’s Sam Altman trying to buy X (formerly Twitter) for $9.74 billion added to the chaos.
What’s Next for Elon Musk?
Musk remains bullish about Tesla. He believes self-driving cars and humanoid robots will push the company to a $10 trillion market value. Some investors still believe in the vision.
Dan Ives, an analyst at Wedbush Securities, called Tesla’s future a “golden age.” But others aren’t so sure.
Stifel analyst Stephen Gengaro downgraded Tesla’s stock outlook. He pointed to Musk’s political distractions and Tesla’s declining public image.
Can Musk Turn It Around?
Musk has faced challenges before. Tesla has soared and crashed many times. But 2025 may be his toughest test yet.
The competition is fierce. The political heat is rising. And for the first time in a long while, Musk’s golden touch might not be enough.
Will he bounce back? Or is this the beginning of a long decline? The world is watching.
