Elon Musk didn’t just lose money in 2025. He lost his accumulation of wealth to become the richest person in the world.
There probably isn’t just one event or move he made. It might be several serious hits — a falling Tesla stock price, political drama, etc. It all added up to a loss of $65.4 billion, if we go off Forbes' metric of wealth.
Things started off well in 2025. By mid-2025, things took a turn. And not an upward direction.
Tesla Crash Wipes Billions in Days
The primary reason for Musk's $63 billion loss in wealth was Tesla. The stock was down 16% this year and that alone made him lose more than $63 billion of his wealth.
Investors began to panic when Tesla's delivery numbers were below what they were expecting - mainly in Europe and China. They were hoping for new innovation from Tesla, or an updated model, but Tesla had nothing to offer.
- EV competition has continued to improve, especially in Asia.
- Tesla has dealt with recalls and manufacturing delay challenges.
- Autopilot updates were not enough to persuade critics.
In mid‑June 2025, Elon Musk posted a now-popular tweet ahead of the initial Robotaxi launch in Austin:
💬 Tweet by Elon Musk (June 22, 2025):
The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!
— Elon Musk (@elonmusk) June 22, 2025
Elon Musk vs. Donald Trump: A Costly Feud
Elon Musk/Trump feud was in June 2025, and it was expensive.
They sparred on social media, in news segments, and on late night shows. Trump mocked Musk’s role on government panels, suggested he’d cut tax credits for electric vehicles like Tesla.
In the same week, Tesla stock dropped 14%, costing Musk $34 billion in wealth in a matter of days.
Days later, stock dropped another $12 billion in value after Trump called Tesla “government funded junk.”
Elon didn’t hold back either, tweeting things that shook Wall Street. That tension made investors nervous — and the market responded fast.
DOGE Role and Billion-Dollar Fallout
Musk accepted a symbolic role in Trump’s government experiment called DOGE — Department of Government Efficiency.
It sounds like satire, but it was real.
And it hit hard.
Tesla’s board wasn’t thrilled. Shareholders questioned his focus. Suddenly, the market saw Musk as less of a CEO and more of a political wildcard.
Experts say this government distraction cost him $113 billion in total — including public trust and shareholder confidence.
EV Tax Credit Threats Scare Investors
Things took a turn for the worst when Trump made the threat in public to take away the federal EV subsidies.
Tesla is dependent on those credits -- approximately $2.8 billion/year. Without those credits the brand is less competitive.
Wall Street knew this and reacted fast. Share prices dipped again, and in following Musk's wealth did as well.
Investors felt the pressure. So did Musk.
Wall Street Calls out Musk's Distractions
Musk's distractions even have analysts that once praised him, beginning to warn him.
Dan Ives, the top analyst onTesla, said Elon’s recent behavior is “a huge distraction at a time when Tesla could use his full focus”.
Then the finance world writes “Is Musk still and visionary that Tesla (and we investors) need as the world approach’s a “next-gen” transition, or just simply distracted?.”
With the loss of confidence, the slip of stock and with this the loss of Musk again in the billions.
Global Sales Drop Hits Hard
Tesla’s numbers didn’t lie. Sales were flat or falling in key markets:
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Europe: EV competition increased massively
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China: Government leaned toward local brands
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US: Consumer interest cooled amid price hikes
For a brand built on momentum, Tesla lost it. And fast.
What About SpaceX, xAI & Crypto?
Musk still holds major stakes in SpaceX and xAI — but those weren’t enough to stop the bleeding.
Crypto markets were also shaky this year. Though Elon didn’t lose big publicly, experts say his diversified portfolio didn’t buffer him much.
Public confidence in everything Musk-tied took a hit. Including xAI and his newer ventures.
Timeline: Musk’s Wealth in 2025
Let’s break down the key moments:
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January: Net worth = ~$486B
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March: Tesla stock drop = -$33B
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June Feud with Trump: -$46B in 2 weeks
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July earnings call disappointment: -$12B
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Now (July 2025): Net worth = ~$367B
It’s one of the largest year-to-date net worth drops ever recorded.
What’s Next? Comeback or Collapse?
Some investors think Elon will bounce back — just like he did after past crashes. They’re holding their shares and watching.
Others? They’re pulling out.
Tesla still has a strong brand. SpaceX is dominating in aerospace. But Musk’s distractions, especially political ones, are becoming a bigger problem.
The next few months will decide everything.
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Will Tesla launch a surprise innovation?
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Will Musk step back from politics?
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Or will more chaos follow?
No one knows for sure. But the pressure is real. And heavy.
Quick Recap of Key Points
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Musk’s wealth dropped $65.4B in 2025
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Tesla’s stock lost over 16%
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Political feud with Donald Trump escalated tension
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DOGE role confused investors
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EV tax credit risk shook markets
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Wall Street is losing patience
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Global sales fell, hurting growth
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Other ventures didn’t soften the fall
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Public trust is fading, slowly
