Elon Musk’s net worth has fallen below $400 billion for the first time in 2025, primarily due to a significant decline in Tesla Inc.‘s stock price. Tesla shares have experienced a 27% drop since mid-December, contributing to a substantial decrease in Musk’s wealth.
As of February 12, 2025, Tesla’s stock price stands at $328.50, reflecting a 6.31% decrease from the previous close. This downturn has impacted Musk’s financial standing, as Tesla stock constitutes a significant portion of his net worth.
The decline in Tesla’s stock value is attributed to various factors, including increased competition in the electric vehicle market and investor concerns about the company’s future growth prospects. Additionally, Tesla’s recent quarterly earnings report, which missed analysts’ expectations, has further contributed to the stock’s downward trend.
Despite the recent financial setbacks, Musk remains a prominent figure in the technology and space industries, with ventures such as SpaceX and Neuralink continuing to advance. However, the fluctuations in his net worth highlight the volatility of the tech sector and the challenges associated with maintaining wealth amidst market dynamics.
Analysts suggest that Musk’s diversified portfolio and ongoing projects may provide resilience against market fluctuations. Nevertheless, the recent decline serves as a reminder of the inherent risks in the technology and automotive sectors.
