Elon Musk's world's richest man title at risk? Know why his net worth is dropping faster than ever

Elon Musk, known for his success with Tesla, SpaceX, and X (formerly Twitter), recently faced a massive USD 120 billion drop in his net worth. Despite still being the world's richest person with an estimated USD 330 billion fortune, this sharp decline, nearly 25% since the start of 2025, has raised concerns about his future.

What Caused Musk’s Wealth Drop?
Musk’s wealth is closely tied to Tesla, and the electric car company’s struggles are a big part of his financial troubles. Over the past two months, Tesla's share price has fallen by about 35%, wiping out USD 400 billion in market value. A key reason for this is Tesla’s sales slump, with U.S. electric vehicle sales dropping 16% from December 2024 to January 2025. Growing competition from other EV makers and reduced demand for luxury electric cars have added to Tesla's challenges.

Political Involvement Adds to Concerns
Another factor contributing to Musk’s difficulties is his increasing political involvement. After spending over USD 250 million to support Donald Trump’s re-election campaign, Musk was appointed as the head of the newly created Department of Government Efficiency (DOGE). His role involves cutting federal spending and managing the national debt, but being linked to a controversial administration has made some investors nervous.

Musk's divided focus between Tesla, SpaceX, and X, and his political responsibilities have led to doubts about his ability to guide Tesla through its current crisis. Some experts worry his government job could distract him from helping Tesla recover. However, Wedbush analyst Dan Ives believes Musk will find a balance between his political and business commitments in 2025.

Musk's Accusations and Growing Backlash
Musk recently claimed that Tesla is being targeted by activist groups funded by ActBlue, a major Democratic fundraising platform. This comes as ActBlue faces an investigation over illegal donations. Meanwhile, anti-Tesla sentiment is growing, with incidents of vandalism, arson, and protests against the brand increasing around the world. Critics argue that Tesla’s struggles are due to Musk’s unpredictable leadership and political choices, not an outside conspiracy.

What’s Next for Musk?
Although Musk is still the wealthiest person in the world, his lead over rivals like Jeff Bezos, Mark Zuckerberg, and Bernard Arnault is shrinking. With Tesla’s future uncertain and his political ties under scrutiny, Musk’s position as a top figure in both the business and financial world is being tested.

Will Musk manage to overcome these challenges and recover his lost billions, or is this the start of his fall from the top? Only time will tell, but with Musk’s history of surprising the world, anything is possible.