Elon Musk loses $80 billion as Tesla slump threatens world’s richest title
TOI World Desk | TIMESOFINDIA.COM | Aug 06, 2025, 23:51 IST
( Image credit : Agencies )
Highlight of the story: Elon Musk's position as the world's richest man is in jeopardy due to an $80 billion drop in his net worth this year, primarily driven by Tesla's declining performance and a 20% stock price decrease in 2025. Despite shareholder approval of a large pay package, investor confidence has been shaken.
Elon Musk’s position as the world’s richest man is under serious threat after a dramatic $80 billion drop in his net worth this year, largely due to Tesla’s declining performance. According to the Bloomberg Billionaires Index, Musk’s wealth now stands at approximately $352 billion.
The primary cause of this decline is Musk’s 13% stake in Tesla, which has been hit hard by falling quarterly revenues and a roughly 20% drop in the company’s stock price in 2025. Despite Tesla shareholders approving a massive $29 billion pay package to retain him as CEO, investor confidence in the company has been shaken.
Tesla reported a double-digit revenue dip in Q2 2025, missing Wall Street expectations, which has had a cascading effect on Musk’s wealth. This comes after a stellar 2024, when Tesla’s stock nearly doubled, propelling its market capitalization above $1.4 trillion and boosting Musk to the top of the billionaire rankings.
Musk’s attempt to refocus on Tesla following his brief and controversial role in the Trump administration’s Department of Government Efficiency (DOGE) has yet to deliver tangible financial results. Despite claiming to cut billions in government waste during his stint, Tesla's recent struggles show a less favorable return on focus.
The tech billionaire’s wealth is also tied to other ventures, including SpaceX, Neuralink, the Boring Company, and XAI Holdings—a merger of social media platform X and artificial intelligence firm xAI. However, not all of these ventures are thriving. Fortune reports xAI is burning through $1 billion monthly, and the Boring Company’s valuation has fallen sharply from $8.6 billion in 2023 to $6.4 billion now.
Musk’s businesses have reportedly received around $38 billion in government subsidies, loans, and contracts, but public perception isn’t in his favor. A Quinnipiac Poll in June 2025 found only 30% of voters view Musk favorably. Even among Republicans, support has waned following his public fallout with President Donald Trump over federal budget issues.
While Musk’s fortune is shrinking, competitors are rapidly gaining ground. Larry Ellison has added $102 billion to his wealth this year, mainly due to Oracle’s resurgence. Mark Zuckerberg’s fortune has grown by $56 billion, and Jensen Huang of Nvidia has seen a $37 billion increase. The gap between Musk and Ellison is now just $60 billion, narrowing the race for the top spot.
Musk remains at number one—for now—but if Tesla’s troubles continue, and his other ventures don’t deliver quick turnarounds, the billionaire crown may soon change heads.