Billionaire fortune erosion of Elon Musk outstrips the total wealth loss of the next seven billionaires collectively
Elon Musk, the CEO of Tesla Inc (NASDAQ:TSLA), has experienced a notable decrease in his wealth this year, with his net worth dropping by a staggering $71.2 billion as of 2025. This significant decline makes his fortune the 23rd largest in the world on its own.
The primary cause of Musk's wealth loss can be traced back to a political feud with President Donald Trump, which has had a profound impact on Tesla's stock performance. In early July 2025, Tesla shares tumbled by 6-7%, causing Musk to lose around $12 billion in a single day. This drop followed Trump’s public threats to strip Tesla of federal electric vehicle tax credits worth approximately $2.8 billion and cut off SpaceX’s government contracts valued at $22 billion if Musk did not soften his criticism of Trump-supported legislation.
The escalating public dispute between Musk and Trump unsettled investors, causing Tesla's market capitalization to drop by about $150 billion. This direct impact on Musk's net worth, given his large Tesla stake, led to a series of steep declines in his net worth throughout 2025. For instance, in June alone, Musk's net worth plunged by $34 billion amid ongoing tension with Trump, which dragged Tesla's stock down by 14% for the week.
The weakened global demand for Tesla in 2025 is also partly attributed to this political conflict. Musk's work with the government through the Department of Government Efficiency has led to calls for boycotts against Tesla. Furthermore, Tesla's sales drops, particularly in Europe and competition in China, have contributed to the decline in the company's stock price.
However, it's important to note that Musk owns approximately 12% of Tesla, and it is unlikely that he could see such a significant drop again in 2025. Nevertheless, continued battles between Musk and Trump could be a storyline to watch.
Interestingly, Trump, who was once strongly opposed to autonomous vehicles and stated that he would ban them from the road, appears to have had a change of heart or been influenced by Musk to make it easier to get autonomous vehicles on the road today.
Meanwhile, other tech billionaires have also seen a decline in their fortunes this year. Bernard Arnault, the CEO of LVMH (OTC:LVMUY), has a net worth of $162 billion but has seen a YTD decline of $14.4 billion. Dustin Moskovitz, Facebook co-founder and Asana Inc (NYSE:ASAN) founder, has a net worth of $11.4 billion and has seen a YTD decline of $16.9 billion.
The share price of Tesla has been volatile since the 2024 presidential election. Tesla shares hit new all-time highs in December 2024, but the stock has since been down 16.7% year-to-date in 2025. Musk previously set a Guinness World Record in 2022 with the largest single-year wealth drop, with his net worth declining between $180 billion and $200 billion.
This news serves as a reminder of the interconnectedness of business, politics, and personal wealth, and how one can significantly impact the other. As the situation between Musk and Trump evolves, investors and the public will continue to watch closely to see how this relationship unfolds.
The dramatic decline in Elon Musk's net worth, from being the 8th to the 23rd largest fortune worldwide, can be partly attributed to a political feud with President Donald Trump that affected Tesla's stock performance and overall value in the world of finance and business. The ongoing disagreements between Musk and Trump have caused unsettling ripples in the global stock market, particularly impacting world business trends associated with Tesla.
