Billionaire Elon Musk is no longer the “$400 billion man” as his net worth fell to $395 billion on February 5. The drop was largely due to Tesla’s stock price falling, as Musk’s relationship with the Trump administration becomes increasingly important to the electric carmaker’s future.
Elon Musk’s fortune plummets
Elon Musk’s net worth fell below $400 billion for the first time this year, according to the Bloomberg Billionaires Index, after Tesla (TSLA) shares plunged. On February 5 alone, his fortune evaporated more than $7 billion as Tesla shares fell 3%. The decline continued on February 6, when the stock fell another 4%.
Tesla now accounts for about a third of Musk’s total net worth, so any fluctuations in the stock market can have a significant impact on his fortune. Despite this, Musk remains one of the richest people in the world.
Elon Musk became the world’s first person to have a fortune of $400 billion in December 2024, when Tesla shares soared after Donald Trump was re-elected as US president. Musk is known to have spent at least $277 million to support Trump’s campaign, according to Bloomberg.
Shortly after taking office, Trump appointed Musk to head a program to cut federal spending, which is expected to benefit Tesla, especially in easing regulations on self-driving cars.
But the Trump administration is also moving to cut subsidies for electric vehicles as part of a plan to eliminate “unfair subsidies.” That could pose new challenges for Tesla, which has benefited greatly from previous green energy incentives.
Elon Musk is no longer the $400 billion man
Besides Tesla, where else does Musk’s wealth come from?
Despite the challenges, Tesla has benefited from investor optimism about new technologies. One of the factors driving Tesla’s recent stock price surge has been Musk’s commitment to launch fully autonomous vehicles and a robotaxi service by 2025.
Musk believes his relationship with the Trump administration will help Tesla navigate regulatory hurdles to its self-driving technology. If Tesla succeeds in rolling out the service, the company could enter a new phase of growth that could yield huge returns for investors.
But delivering on that promise won’t be easy. Autonomous vehicle technology still faces many technical and legal challenges. If Musk fails to deliver on his stated roadmap, investor confidence in Tesla could wane, putting significant pressure on its stock price.
Aside from Tesla, Elon Musk’s second-largest fortune comes from SpaceX, the private space exploration company he founded. According to Bloomberg, Musk currently owns about 42% of SpaceX, a company currently valued at nearly $350 billion.
SpaceX has scored a number of major successes, including major contracts with NASA and the US Department of Defense, and remains one of the most valuable private space companies in the world.
Still, Musk’s net worth is largely dependent on the price movements of Tesla’s stock, so his financial future will be tied to Tesla’s ability to continue to innovate and maintain its position in the global electric vehicle market.
