Elon Musk’s net worth has taken a significant hit as Tesla’s stock continues to decline. Recent estimates show that his net worth has declined by billions, representing one of the most significant drops in recent years. The decline comes amid a broader market downturn and new trade tariffs imposed by President Donald Trump.
Here’s what we know about Musk’s financial losses and Tesla’s struggles.
Elon Musk’s fortune has seen a $111 billion decrease from its peak
Elon Musk’s net worth has dropped by $111 billion from its peak, primarily due to Tesla’s stock declining by over 40%.
As of Tuesday, Musk’s wealth stood at $353.2 billion, down from its December 17 record of $464 billion when Tesla stock was priced at $480 per share (via Forbes). On Tuesday, Tesla shares closed below $280, approaching their lowest level since Election Day.
The decline coincides with a broader market downturn, as the S&P 500 dropped by 1.7% to a 2025 low. The drop in Tesla’s value follows the implementation of President Donald Trump’s tariffs on Canada, China, and Mexico, impacting Tesla’s global supply chain. Tesla CFO Vaibhav Taneja previously stated that these tariffs would affect profitability as the company remains reliant on international imports.
Musk’s $111 billion loss is greater than the entire net worth of Microsoft co-founder Bill Gates, who has an estimated $108.1 billion fortune. Asia’s richest individual, Mukesh Ambani, has a net worth of $85.6 billion, which is also lower than Musk’s recent financial decline. Despite the downturn, Musk remains the world’s wealthiest person.
Tesla has faced additional challenges beyond trade tariffs, including a 45% drop in new vehicle registrations in Europe for January, even as overall EV sales in the region grew (via NBC News). Sales in China have also shown a downward trend. Some analysts suggest European consumers may be reacting negatively to Musk’s alignment with Trump’s administration.
Despite the setbacks, Tesla’s stock remains up from the past year. Some investors believe the company’s planned robotaxi service and new vehicle models may drive future growth. Additionally, Musk’s privately held ventures, including SpaceX and xAI, have maintained strong valuations, contributing to his overall wealth.
