The heritage of Elon MuskCEO of Tesla and Spacex, fell below $ 400 billion for the first time in 2025, according to the Bloomberg Billionaires Index. In December last year, Musk reached a record by becoming the first person in the world to exceed $ 486 billion. However, in less than two months, he lost about $ 90 billion.
The main reason for this fall is the devaluation of Tesla (TSLA) actions, which already accumulate 27% in the year. The company faces drop in demand for electric vehicles, increased competition from Chinese byd and the delay in delivering promised autonomous driving technology. In addition, according to the magazine FortuneRecent political controversy involving Musk have also influenced investors’ confidence.
Check out the three main reasons behind the billionaire’s fall of fortune.
1. Tesla: weak sales and Chinese competition
Tesla recorded, in 2024, its first drop in annual sales in over 12 years, selling 20,000 vehicles less than the previous year. In addition, the company has been losing ground to BYD, a Chinese manufacturer that – an sector in which Tesla faces regulatory challenges.
Sales numbers also do not cheer in Europe either. Last month alone, Tesla sales fell 63% in France and 60% in Germany, even with signs of recovery in demand for electric vehicles on the continent.
The impact of these losses is significant for Musk because about 60% of their assets come from Tesla actions and options. The billionaire also has a 42% stake in Spacex, valued at $ 136 billion.
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2.
Another factor that may have affected Tesla is Musk’s recent onslaught in the artificial intelligence sector. Last week, a company of which Musk was one of the co -founders. However, OpenAi CEO Sam Altman and, in response, suggested that Musk sell his social network X (former Twitter) for $ 9.74 billion.
Tesla’s actions have been falling five consecutive days, coinciding with this episode and the worsening in the company’s operational scenario.
3. US elections
After the election of Donald Trump, driven by the expectation that a republican government could adopt rates against China and protect US automakers from foreign competition. However, Trump has also signaled his intention to eliminate subsidies for renewable energy, which could hinder smaller companies in the electric vehicle sector.
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Musk still tries to maintain optimism in the market, pointing to Tesla’s future projects, such as the continuous promise of autonomous vehicles. During the last disclosure of results, he said the company has the potential to reach $ 10 trillion in revenue in the future. Nevertheless, operational difficulties and increasing competition are pressing Tesla’s actions and the fortune of their CEO.
(With information from Fortune)
