Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
After President Donald Trump won the elections, Tesla CEO Elon Musk’s fortune reached a historic milestone, surpassing the $400 billion mark and nearly doubling in just a few months.
However, as the saying goes, easy come, easy go. For the first time in 2025, Musk’s fortune has fallen below that symbolic threshold, primarily due to the poor performance of Tesla.
Under $400 billion. Musk’s wealth has dropped from an impressive $428 billion registered a few days ago to $387.1 billion on Wednesday.
The loss of $40.9 billion in just one week marks the end of a two-month period of consistent growth in his fortune, which peaked at $486.4 billion on Dec. 17, 2024. Maintaining this high valuation over time has proven challenging.
Still exceedingly rich. Despite the substantial decline in his fortune over the past two weeks, Musk still holds the title of the world’s richest person. Meta CEO Mark Zuckerberg follows Musk with a net worth that has been steadily increasing in 2025 and now stands at $249.8 billion.
In third and fourth place on the Forbes billionaires list are Amazon founder Jeff Bezos, with $243.4 billion, and Oracle CEO Larry Ellison, with $214.5 billion. Both Bezos and Ellison are still recovering from the stock market turbulence caused by DeepSeek’s recent launch.
Tesla’s decline. Musk isn’t only Tesla’s CEO but also its main minority investor. He controls between 12% and 15% of the electric car manufacturer, meaning around 60% of his fortune is tied to Tesla’s performance.
The company isn’t in its best shape, with its share price falling by more than 30%–16.6% so far this year. These numbers bring Tesla’s market capitalization back to levels seen at the end of 2021. The decline intensified following the release of Tesla’s fourth-quarter results for 2024, which confirmed a continued downward trend in car sales.
Market adjustments and expectations. According to Bloomberg, there’s a gap between Tesla’s actual financial performance and its stock price. This disconnect is often seen in startups with high growth potential. However, it’s unusual for a mature company like Tesla, which has been around for more than a decade. The decline in the stock market may stem from an adjustment in investor expectations due to disappointing financial results in recent quarters.
Additionally, the recent emergence of DeepSeek has had a significant impact. Musk has repeatedly said that Tesla plans to transition from being merely a car manufacturer to an AI company. The idea that AI can be developed at a lower cost–just like DeepSeek has proven–has also raised concerns among Tesla investors. In short, Tesla is currently facing a “perfect storm.”
No longer the apple of their eyes. Investors didn’t like that Musk seemed to prioritize managing his other companies. Critical voices emerged when he focused on making his rockets land autonomously. They also felt he spent too much time posting inflammatory messages on X that negatively impacted Tesla’s finances. Despite these concerns, Musk was able to calm the investors’ fears with impressive financial results, which even led to the approval of his billion-dollar pay package.
However, Musk’s new position as head of the Department of Government Efficiency in the Trump administration and his explicit support for far-right groups in Europe have once again raised doubts among investors. They question whether the Tesla CEO is dedicating the necessary time and energy to reversing the company’s downward spiral.
Image | Maurizio Pesce
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