Elon Musk Losses $111 Billion As Tesla’s Shares Dropped By 40%

Despite losing an astonishing $111 billion, Elon Musk still holds the title of the world’s wealthiest individual. Tesla’s stock has suffered a steep decline of over 40% from its peak, primarily due to economic uncertainty and the impact of new trade tariffs introduced by former U.S. President Donald Trump.

A Sharp Decline in Net Worth

Musk’s fortune took a significant hit, dropping by $1.5 billion in just one day, bringing his total wealth down to $353.2 billion, as per Forbes’ real-time estimates. This marks a substantial decline from his peak net worth of $464 billion on December 17, when Tesla stock closed at an all-time high of $480 per share.

Since then, Tesla’s shares have struggled, falling below $280, nearing their lowest point since Election Day. Meanwhile, the S&P 500 index also experienced a 1.7% drop, hitting its lowest level in 2025. The market downturn comes as the U.S. imposes tariffs on Canada, China, and Mexico, significantly impacting international trade.

To put Musk’s financial setback into perspective: Bill Gates, the co-founder of Microsoft, has a net worth of $108.1 billion—meaning Musk has lost more than Gates’ entire fortune.

Tesla Faces Challenges Due to Trade Tariffs

Tesla has been hit particularly hard by trade restrictions, as China is its second-largest market, and the company heavily relies on Canadian imports for production. Tesla’s CFO, Vaibhav Taneja, previously warned that these tariffs could affect the company’s profitability, as its operations depend on an extensive global supply chain.

Musk’s Fortune Still Outpaces Others

Despite this significant downturn, Musk’s wealth remains $83.3 billion higher than it was on Election Day. This increase is largely due to the rising valuations of SpaceX and xAI, his privately held companies, which continue to grow in worth.

While Tesla struggles with financial and market challenges, Musk’s influence remains unmatched. As one of the world’s most powerful billionaires, his business ventures, political connections, and financial decisions continue to shape global industries and markets.