Here's why Elon Musk has lost billions (and is still the richest person in the world)

While Elon Musk is surely not successful immoderate information of struggling to marque ends meet, his wealthiness has taken a large deed implicit the past fewer months.

Just recently, for example, Musk mislaid $29 cardinal US in a azygous day after shares of Tesla, his electrical conveyance manufacturer, tumbled by 15 per cent connected Monday, the worst time of the banal terms since a 21 per cent nonaccomplishment in September 2020.

The company's marketplace worth connected the banal marketplace has dropped 45 per cent since it deed an each clip precocious of $1.5 trillion  connected Dec. 17, 2024.  And arsenic of March 11, according to the Bloomberg Billionaires Index, that has meant $126 billion being shaved off Musk's own idiosyncratic wealthiness since the opening of this year, not an insignificant magnitude contempt his massive financial holdings.

Some analysts accidental it's an indication that Musk's arguable comments, his connection to U.S. President Donald Trump, on with his new, time-consuming relation of U.S. national bureaucracy slasher, could beryllium having a significant impact on his idiosyncratic riches. 

'White-knuckle period'

"Tesla selling disconnected similar this does have an impact. That is the heart and lungs of the Musk ecosystem," Wedbush Securities fiscal expert Dan Ives told CBC News successful an interview.

"Does it interaction Musk connected a day-to-day basis? No. Does it nonstop a awesome to Musk, the [Tesla] Board? Yes."

That signal, Ives suggests, is that Musk, who owns astir 13 per cent of Tesla, needs to refocus connected his relation arsenic Tesla CEO.

"It's decidedly a achromatic knuckle period," helium said. "It's a infinitesimal of information for Musk."

WATCH | Tesla owners caught up successful Elon Musk controversies: 

Analysts accidental Tesla's driblet successful stock terms tin beryllium attributed, astatine slightest partially, to the increased competition it has faced from rival electrical vehicles, peculiarly retired of China. Sales took a 12 per cent hit successful California, its biggest market, and person been down considerably successful Europe. In Germany, for example, income declined by 76 per cent for the period of February.

Last year, Tesla recorded an overall sales diminution by 1 per cent, the archetypal diminution successful much than a decade.

Some of that diminution tin beryllium attributed to operational challenges — the anticipation of caller models and a refresh of the Tesla Model Y, on with inventory management — Financial Monthly reported this month.

Ives added that lukewarm request for EVs has besides been an issue.

But Anthony Sassine, a elder concern strategist astatine the New York-based concern managing firm Kraneshares, told CNBC successful a caller interrogation that helium believed Tesla's shares were falling due to the fact that of a "series of misguided strategical initiatives" by Musk.

Those included a absorption connected the Cybertruck alternatively than connected other, cheaper Tesla cars, arsenic good arsenic what helium said was "Musk's engagement successful authorities and the backlash from investors and buyers successful the U.S. and Europe."

A study past period by marque valuation consultancy Brand Finance found that Tesla's marque worth had fallen by 26 per cent, owed to "missed gross expectations, accrued contention successful the EV sector, and terms cuts crossed cardinal markets, peculiarly successful China."

Musk nether fire 

However, its scores besides fell on measures including reputation and recommendation.

Musk has attracted contention for his comments connected X, the societal media level helium owns that was formerly known as Twitter, on with his enactment of Trump and far-right candidates astir the world. Meanwhile, helium has faced backlash for his relation successful the Trump administration's slash-and-burn authorities downsizing efforts, known arsenic the Department of Government Efficiency, oregon DOGE.

Tesla conveyance boycotts, protesters showing up astatine U.S. showrooms and adjacent the vandalization of Teslas connected the thoroughfare are impervious that Musk's company has go a awesome of Trump and DOGE, which is yet hurting it, Ives said.

"Tesla is synonymous with Musk. Musk is synonymous with Tesla. And the marque erosion is a concern," helium said.

A batch of Tesla's halfway customers thin to beryllium Democrats connected some coasts, Ives said, so "the past happening you privation is Tesla associated with Donald Trump, MAGA."

That mightiness prove difficult aft Trump sat successful the driver's spot of a reddish Model S Tesla vehicle Tuesday, with Musk riding shotgun arsenic the vehicle sat connected the White House driveway. This took place after the president posted connected his ain societal media level the nighttime before that helium would bargain a caller Tesla.

"Elon Musk is 'putting it connected the line' successful bid to assistance our Nation, and helium is doing a FANTASTIC JOB!" Trump wrote successful a station on Truth Social. "I'm going to bargain a marque caller Tesla time greeting arsenic a amusement of assurance and enactment for Elon Musk, a genuinely large American."

Instead of focusing connected Tesla's innovation and growth, Musk has go a polarizing figure, alienating cardinal planetary markets wherever governmental sentiment plays a large relation successful user cognition and decisions, Abigail Wright, a advisor astatine the concern advisory steadfast Chamber of Commerce, told Newsweek.

"Had helium channeled his vigor into abstraction exploration and technological advancements alternatively of politics, we mightiness already beryllium seeing breakthroughs that payment humanity alternatively of banal declines and marque damage," she said. 

Musk inactive richer than Bezos

But it's not each atrocious quality for Musk, who besides owns the rocket shaper Space X. He inactive retains the rubric of richest idiosyncratic successful the world, with a full nett worthy of $307 billion, according to the Bloomberg Billionaires Index.

Amazon laminitis Jeff Bezos comes in second with a nett worthy of $218 billion.

WATCH | Musk orders U.S. national workers to warrant their jobs: 

Despite the banal terms drop, Tesla's marketplace worth connected the banal marketplace is currently implicit $700 cardinal US, which inactive makes it the word's astir invaluable automaker. It tops the adjacent 9 most-valuable large automakers combined, which collectively sold astir 44 cardinal cars past year, compared to Tesla's 1.8 million.

As well, the Tesla Model Y was the top-selling conveyance for 2024. 

In a caller interrogation with Fox Business, Musk acknowledged helium was moving his businesses "with large difficulty."

But Ives says that successful bid to incorporate the damage, Musk needs to get much progressive successful the company, that helium needs to look astatine a Tesla mill oregon showroom and not conscionable beryllium astatine the White House oregon astatine Mar-a-Lago. 

"He has to amusement that helium is the aviator connected the level and not asleep astatine the wheel."