Elon Musk, the world’s richest man and CEO of Tesla, has seen a dramatic fall in his wealth this month, losing over $43 billion due to a sharp decline in Tesla’s stock prices. As the billionaire navigates financial losses, attention is also growing over his political ties, particularly his relationship with President Donald Trump, and how this might affect the future of his companies.
Tesla shares dropped 6.3% on Tuesday, February 6, closing at $328.50, marking its lowest point since November 2022. The stock’s sharp decline is part of a broader downturn that has seen Tesla’s share price fall by nearly 32% from its high of $479.86 in December 2022. This month alone, the electric vehicle maker’s stock has seen a significant drop of 18.8%, or over $76 per share.
The plunge has deeply impacted Musk’s net worth. Forbes estimates Musk’s fortune at $378.8 billion as of Tuesday, down by $42.8 billion from the $421.6 billion he was valued at the end of January 2025. Despite this loss, Musk remains the wealthiest person on the planet, still ahead of Meta CEO Mark Zuckerberg by approximately $130 billion.
The major drop in Musk’s net worth can largely be attributed to Tesla’s poor performance on the stock market. Tesla’s largest shareholder, Musk holds nearly 13% of the company, and this loss has cost him billions. Analysts have pointed to multiple factors contributing to the stock slump, including increased competition in the electric vehicle (EV) market, particularly from Chinese EV giant BYD, as well as concerns over Musk’s political involvement.
A note from Oppenheimer analysts has added fuel to the fire by suggesting that Musk’s political activities could be harming Tesla’s public image. The analysts warned that Musk’s involvement with political causes could alienate consumers, and create a backlash for Tesla, especially in light of his ties to the Trump administration.
“While Musk’s political activity has fans in certain circles, his public life risks alienating consumers and employees as the Trump administration tests the limits of its power,” the Oppenheimer analysts wrote. This statement reflects growing concerns that Musk’s high-profile support for Trump, particularly his donations to Republican causes ahead of the 2024 election, could hurt Tesla’s sales and reputation.
Musk, who has been an outspoken supporter of Trump, donated nearly $290 million to Trump and other GOP causes. As Trump begins his second term as president, Musk has played a critical role, particularly in his involvement with the Department of Government Oversight (DOGE) agency, which aims to reduce the federal government’s footprint.
The growing scrutiny of Musk’s political affiliations has led to questions about whether his public support for controversial figures like Trump could impact his companies, especially Tesla. The company has already faced challenges in both European and Chinese markets, where sales have declined.
Tesla’s struggles are not just confined to the stock market. Analysts are pointing to signs of trouble in international markets, particularly in China and Europe. Oppenheimer’s analysts noted “concerning” sales figures for Tesla in these regions, which could suggest that consumer confidence in the company is wavering. This comes after the company’s fourth-quarter earnings report failed to meet Wall Street’s expectations, further driving down the stock price.
One of Tesla’s biggest competitors in the electric vehicle market, BYD, a Chinese automaker, has been making significant strides in autonomous driving, a technology that Tesla has long touted as its own strength. This increased competition could be contributing to the pressure Tesla is facing in global markets.
While Tesla remains Musk’s biggest financial asset, his wealth is also tied to his other ventures, including his space exploration company SpaceX, the social media platform X (formerly Twitter), and his generative AI startup xAI. However, these ventures, while valuable, have not shielded Musk from the recent financial impact of Tesla’s downturn.
In addition to his businesses, Musk’s recent move to submit a $97.4 billion bid to buy the nonprofit arm of OpenAI, a rival to his AI startup xAI, has raised questions. Some analysts have suggested that Musk’s involvement with OpenAI, which he co-founded in 2015 but left after a messy fallout with its current CEO Sam Altman, could be a distraction as he grapples with Tesla’s challenges. The offer, analysts suggest, is an unnecessary complication in an already difficult time for Musk and his companies.
Despite the financial losses, Musk remains confident in the future of his companies. He has long maintained that Tesla’s potential is far from realized, and many investors still believe that the company’s electric vehicles will continue to dominate the market in the coming years. However, the stock slump and Musk’s personal financial losses highlight the fragile nature of the electric vehicle market, especially as competition increases and consumer confidence fluctuates.
Musk’s leadership is central to the company’s image, but his political activities and personal opinions continue to draw attention. Whether his controversial ties to Trump and his outspoken views will ultimately help or hurt Tesla remains uncertain. For now, analysts warn that the company must focus on improving its performance in key markets like China and Europe if it hopes to recover from the recent downturn.
Elon Musk’s wealth and influence have made him a global figure, with his work in electric vehicles, space exploration, and artificial intelligence shaping the future of technology. However, the recent financial slump and growing scrutiny of his political activities bring into question how his actions and leadership will impact the future of Tesla and his other ventures.
