Elon Musk’s Net Worth Drops Below $400B as Tesla Struggles Intensify

Elon Musk’s fortune has dipped below $400 billion for the first time in two months, largely due to a sharp decline in Tesla’s stock price.

The electric vehicle giant has been struggling, with its shares plummeting by 27% since their peak in mid-December. Investor confidence has been shaken as concerns grow about Tesla’s future in the competitive EV market.

Tesla Faces Sales Decline in Key Markets

Tesla’s woes are not limited to stock prices; the company is also experiencing a significant drop in sales. In Germany, Tesla’s deliveries have plummeted by 59%, and in China—one of its most crucial markets—sales have declined by 11.5%.

These disappointing figures contributed to Tesla’s worst trading week since October, with an 11% drop in shares over the past week alone.

Musk has been making headlines in politics, focusing on reducing government spending through his role in the Department of Government Efficiency (DOGE).

However, his political ambitions and cost-cutting initiatives have done little to reassure investors, as Tesla’s performance continues to decline.

Musk’s Wealth Remains Tied to Tesla

Despite Tesla’s downturn, Musk remains among the richest individuals globally. His current net worth stands at $394.6 billion, with Tesla still accounting for a substantial portion of his fortune.

However, his stake in SpaceX is becoming increasingly valuable, now estimated at $136 billion—almost rivaling his Tesla holdings.

Could Government Policies Revive Tesla?

Some investors remain hopeful that the Trump administration might introduce policies favoring Tesla, such as adjustments to electric vehicle tax incentives.

If such changes occur, Tesla could potentially see a resurgence. However, given the unpredictability of economic conditions and government regulations, the future remains uncertain.

Tesla Stock Hits a Three-Month Low

Elon Musk’s net worth saw a significant decline as Tesla shares fell 6.34%—a drop of $22.23—closing at $328.50 on Nasdaq on February 11. This marked a three-month low and a 32% decline from its all-time high of $479.86 on December 17.

Musk owns approximately 13% of Tesla (valued at around $150 billion), along with an additional 9% in equity shares currently under legal review.

According to the Bloomberg Billionaires Index, his net worth was $379 billion as of February 12, representing a year-to-date loss of $53.7 billion and a $15.9 billion drop from the previous update.

Competition from BYD and Market Skepticism

Musk’s wealth decline has also been attributed to advancements in autonomous driving by Tesla’s Chinese competitor, BYD.

Additionally, analysts at Oppenheimer, led by Colin Rusch, issued a skeptical note cautioning that Musk’s political activities could provoke consumer backlash.

“Musk’s political activity has fans in certain circles, but his public life risks alienating consumers and employees as the Trump administration tests the limits of its power,” the analysts stated.

Musk had donated nearly $290 million to Trump and other Republican causes ahead of the 2024 elections and now heads the Department of Government Efficiency (DOGE), aimed at cutting federal spending.

Tesla’s Declining Market Position

Tesla’s stock and options make up over 60% of Musk’s wealth, which peaked at $486.4 billion on December 17 following Trump’s election victory.

However, Tesla’s performance last week marked its worst decline since October, with an 11% drop in shares attributed to poor monthly sales.

In Germany, deliveries fell by 59% to their lowest level since 2021, while China’s sales dropped 11.5% year-over-year.

These declines contributed to Tesla’s fourth consecutive day of losses in the New York stock market, where shares fell another 3% to $350.73.

SpaceX Gains Value Amid Tesla’s Decline

While Tesla’s decline affects Musk’s overall fortune, his other ventures, particularly SpaceX, are growing in value.

Bloomberg reports that Musk’s 42% stake in SpaceX is now valued at approximately $136 billion—nearly matching his Tesla holdings.

Meanwhile, Musk is also leading a group of investors in an unsolicited $95 billion bid to acquire OpenAI, the company behind ChatGPT. OpenAI’s CEO, Sam Altman, has since rejected the offer in a post on Musk’s social media platform, X.

Musk’s Net Worth and Future Prospects

Elon Musk remains the world’s richest individual, though his wealth has seen fluctuations. In December 2024, Musk achieved a historic milestone when his net worth surpassed $400 billion.

Following Trump’s election victory in November, his wealth received a substantial boost.

Musk reportedly spent $277 million in the U.S. election to support Trump and now plays a prominent role in the government.

His leadership at DOGE aims to reduce federal expenditures, yet investors remain cautious about Tesla’s long-term trajectory.

Elon Musk’s net worth has dipped below $400 billion due to Tesla’s stock decline, falling sales, and increased competition from rivals like BYD.

While his political involvement and role in the Trump administration continue to shape public perception, Tesla’s future remains uncertain.

However, with SpaceX’s rising valuation and Musk’s strategic investments, his wealth could see a shift in composition rather than an outright decline.