Elon Musk’s net worth drops below $400 Billion

Elon Musk, the CEO of Tesla and SpaceX, has seen his net worth fall below $400 billion for the first time in 2025. The drop comes as Tesla’s stock declined due to investor concerns about the company’s future, competition from Chinese EV manufacturer BYD and Musk’s political affiliations.

On February 11, Tesla’s shares fell 6.34% to $328.50 on the Nasdaq, marking a three-month low. This follows a sharp decline of nearly 32% since the stock’s all-time high of $479.86 in December 2024. Musk, who owns around 13% of Tesla, lost approximately $15.9 billion in a single day. According to the Bloomberg Billionaires Index, his net worth now stands at $379 billion, reflecting a year-to-date loss of $53.7 billion.

1. Competition from BYD: Tesla faces increasing competition from BYD, a leading Chinese EV manufacturer making significant advancements in autonomous driving.
2. Political Controversy: Musk’s vocal support for former US President Donald Trump has raised concerns among investors. Analysts warn that his political stance could alienate consumers and employees.
3. Weak Sales in China and Europe: A report from Oppenheimer analysts highlighted a decline in Tesla’s sales in key international markets further dampening investor confidence.

Musk has been an influential figure in the EV industry, but Tesla’s current struggles highlight the challenges ahead. With growing competition, political controversies and market uncertainties, Tesla will need strategic decisions to regain investor trust.