Elon Musk’s Net Worth Falls Below $300 Billion for the First Time in Months — Here’s Why
April 8, 2025
Elon Musk, the world’s richest person, has seen his net worth fall to $298 billion, dropping below the $300 billion mark for the first time since November 2024. Just four months ago, he made headlines for being the first person ever to surpass $400 billion in personal wealth — but a mix of market shocks, political controversy, and company-specific issues have triggered a major financial setback.
What Caused the Drop?
The primary cause is a steep 40% decline in Tesla’s stock price since January 2025. Tesla makes up the bulk of Musk’s fortune, so any movement in the company’s stock has a big impact on his net worth. But why is Tesla stock falling?
Controversy Around Musk’s Role in Government
One major factor is Musk’s controversial appointment to the Department of Government Efficiency (DOGE) — a new division created under President Donald Trump’s administration. As an advisor, Musk has become more involved in politics than ever before. That decision has not sat well with many Tesla customers, investors, and even employees, who worry the company is being politicized.
Public backlash followed quickly. Protests erupted in cities across the U.S., with demonstrators calling for Musk to resign from the government role and focus on his leadership at Tesla. The association with partisan politics has also damaged Tesla’s brand image — especially among its core customer base of environmentally-conscious, tech-savvy buyers.
Tariffs and Trade Tensions Make Things Worse
In addition to the internal drama, the U.S. government’s new trade tariffs — particularly against the European Union — have added fuel to the fire. These tariffs have increased the cost of materials and exports, hurting Tesla’s bottom line. Investors fear that the company could face higher production costs, reduced global demand, and a tougher business environment if trade tensions continue.
Musk has publicly criticized these tariffs, calling them bad for both business and innovation. But his comments haven’t been enough to ease investor concerns.
Other Billionaires Also Affected — But Not All
This week’s market turbulence hasn’t only hit Musk. According to the Bloomberg Billionaires Index, the top ten richest individuals lost a combined $172 billion over just three days.
Elon Musk: Down $35 billion
Jeff Bezos: Still #2, with nearly $200 billion
Warren Buffett: The only one in the top 10 whose net worth increased, thanks to safer, more traditional investments
Buffett’s recent move to reduce exposure to tech stocks and rebalance toward energy and consumer goods has proven successful amid the current volatility.
What’s Next for Musk and Tesla?
Despite this financial hit, Musk is still the wealthiest person on the planet. He remains active on social media and continues to promote upcoming Tesla projects like the next-gen Cybertruck, Full Self-Driving updates, and developments from his AI startup xAI.
However, with pressure mounting from all sides — political, economic, and public — analysts believe Musk may need to scale back his political involvement or make major moves at Tesla to stabilize investor confidence.
