In an extraordinary turn of events for his finances, Elon Musk, the world’s richest man, has seen his net worth nosedive by an astounding $188 billion mere from January 20, 2025 — when Donald Trump started his second term as President. The information was provided by Bloomberg Billionaires Index, a source which publishes daily ranking of the richest individuals’ wealth.
To put things in perspective, in December 2024 Bloomberg showed his wealth as $486 billion which then fell to $298 billion in April 2025. This is a dramatic reduction of 38% within a short period, thus Musk was the most affected person on the list of the world’s 500 wealthiest people.
The most probable causes for the steep decrease
The primary reasons for Musk’s substantial loss of money were numerous. The anchor behind all this mess is definitely Tesla which is an electric car company that Musk spearheads. The stock of Tesla has seen a huge decline, and it is now down more than 45% since its peak following the 2024 election. Considering that Musk holds approximately 13% of Tesla, if there is a drop in the stock price it will directly impact his worth.
Only in the course of one day in March were Tesla shares worth $29 billion less. This led to a personal loss of over $3 billion to Musk in just 24 hours.
The situation worsened due to the tariffs introduced by Trump
The president’s trade policies are also one of the major elements that have contributed to Musk’s crisis. Trump Trump increased the tariffs on goods from China, Canada, and Mexico, including the ones indispensable for Tesla, for example, lithium and aluminum. The new tariff rate from China reached 145% this week sparked the most alarm amongst global investors.
Consequently, the cost of production for Tesla has become both higher and more uncertain. The stock of Tesla became cheaper by 5.2% quickly after the new tariffs were revealed. Musk himself did not hesitate to draw the attention of the public to the trade war, and he even suggested that a “zero tariff zone” should be established between the U.S. and Europe.
The European Commission, with Ursula von der Leyen at the top, responded that Europe is willing to have a free-trade agreement with the United States. Such a way, they can be sure that there will be no more economic tension.
Tesla Sales Slide in 2025
The situation has exacerbated Musk’s financial problems as Tesla’s sales data for the first quarter of 2025 fell a lot short of the target. The company sold 336,000 vehicles, which is 13% less than in the same quarter of the last year. Actually, the sales numbers were expected to be higher by analysts.
The sales fall has mostly occurred in China and Europe where the Tesla brand has lost its luster. It is mainly because the company has become less desirable in some of the crucial embattled markets due to public protests, negative press, and political controversies.
Musk’s Controversial Government Role
Yet another surprising reason for Musk’s declining popularity is his new role in the Trump government. He now runs the Department of Government Efficiency (DOGE), a special unit that was set up by President Trump to eliminate government waste.
While Musk’s supporters are of the opinion that his actions are consistent with his public commitment, his detractors, in the meantime, accuse him of taking Tesla to the wrong direction by being too much involved in politics. Some castigated him for not only supporting but also promoting divisive policies and taking controversial stands online.
As it is said by Business Insider, in the existing situation, Musk is under intense pressure to give up his state duties. A sign of Musk’s departure from DOGE comes from none other than Trump himself who dropped the hint that Musk’s days there may be numbered.
Musk Still on Top — For Now
Still, Musk has managed to remain the richest person on the planet in the face of such an enormous loss. He still presides over a personal fortune estimated to be around $298 billion which is significantly more than his closest competitors like Jeff Bezos ($193 billion) and Mark Zuckerberg ($179 billion).
However, with the continuous depreciation of Tesla’s shares, trade wars making on the global stage and the political controversies going on created the situation that the Musk’s wealth and financial empire are going to be a misty picture.
Is Musk going to regain his profits — or instead lose to political and economic pressures?
Keep your ear to the ground, because it doesn’t seem like the end of the story yet.
