Elon Musk, the world’s richest individual, experienced a significant financial setback on March 10, 2025, as his net worth plummeted by $29 billion in a single day. This sharp decline was primarily due to a 15% drop in Tesla’s stock price, marking its most substantial single-day decrease since September 2020.
Prior to this downturn, Musk’s net worth stood at $330 billion on March 9, 2025. The $29 billion loss represented a 6.7% decrease, bringing his net worth down to $301 billion. Despite this significant reduction, Musk maintains a substantial lead over other billionaires, with Amazon founder Jeff Bezos trailing by $85 billion.
Several factors have contributed to Tesla’s recent stock decline:
- Intensified Competition in China: Tesla has been facing stiff competition from domestic manufacturers like BYD in China, the world’s largest electric vehicle (EV) market. In February 2025, Tesla’s shipments from its Shanghai plant dropped by 49%, totaling 30,688 vehicles—the lowest monthly figure since July 2022.
- Decreased Sales in Germany: Tesla’s registrations in Germany fell by 70% during the first two months of 2025, indicating challenges in maintaining its market share in Europe.
- Investor Concerns Over Musk’s Political Involvement: Musk’s active role in U.S. politics, including a $250 million donation to President Donald Trump’s re-election campaign and his appointment as head of the Department of Government Efficiency (DOGE), has raised apprehensions among investors. This political engagement has led to perceptions of divisiveness, potentially affecting consumer sentiment and investor confidence.
In response to these developments, Musk acknowledged the challenges during a Fox Business interview, stating that managing his various business ventures alongside his government role has been “with great difficulty.”
The broader tech industry has also been affected, with eight tech billionaires, including Musk and Jeff Bezos, collectively losing approximately $266 billion in 2025. This downturn is largely attributed to investor concerns stemming from economic policies implemented by President Trump, signaling a potential recession and heightened market uncertainty.
Despite these setbacks, Musk remains the world’s wealthiest individual. However, the recent challenges underscore the volatility of the tech industry and the potential impact of external factors on personal fortunes.
