Elon Musk could be one mistake away from being dethroned as world's richest man following $80,000,000,000 loss
Tech rivals are quickly closing in on Musk's throne
Elon Musk's wealth has taken an $80 billion hit, putting his title of the world's richest person in jeopardy.
Musk's role at the Department of Government Efficiency (DOGE) may have trimmed federal spending and cut hundreds of jobs, but it may have simultaneously carved a massive chunk out of his personal fortune.
According to the Bloomberg Billionaires Index, the world's richest man watched $80 billion evaporate from his net worth this year, dropping from a peak of over $450 billion to roughly $352 billion today.
The bulk of Musk's wealth loss seemingly stems from his 13% stake in Tesla, which continues to struggle despite his recent return to focus on the electric vehicle company.
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Even after shareholders pleaded with him to step back from his role as head of DOGE and concentrate on Tesla full-time, his return hasn't delivered the turnaround investors hoped for.
That said, executive board members at the electric vehicle company just approved a $29 billion pay package for Musk, calling it a 'critical first step' toward keeping his attention focused on the company.
Tesla missed Wall Street expectations and reported a double-digit revenue decline in the second quarter of 2025, causing the stock to drop nearly 20% for the year.
But Tesla isn't the only enterprise to see a hit in value either.
The South African's AI venture xAI is reportedly burning through $1 billion monthly, while the Boring Company's valuation has slumped from $8.6 billion to $6.4 billion since July 2023.
While Musk maintains his position at the top of the global wealth rankings, the gap is narrowing fast.
Oracle founder Larry Ellison has gained over $100 billion this year, putting him just $60 billion behind Musk, the Bloomberg Billionaires Index reported.
Meanwhile, Meta's Mark Zuckerberg has also surged ahead with a $56 billion increase and Nvidia's Jensen Huang also added $37 billion to his fortune.
“Oracle’s future is bright in this new era of cloud computing. Oracle will be the number one cloud database company,” Ellison said in the business’s earnings call in June. “Oracle is already prospering in this new era of cloud computing and AI, and it’s just the beginning.”
Musk's government role, while unpaid, may have cost him more than just time and focus. A recent Quinnipiac Poll found only 30% of voters view him favourably, and his public spat with President Trump over federal budget negotiations has allegedly dented his support among Republicans.
His companies have historically benefitted from government relationships, receiving some $38 billion in contracts, loans, and subsidies, the Washington Post recorded. But his high-profile political involvement appears to have backfired with consumers and investors alike.
Musk has spent years trading the top spot with billionaire rivals like Jeff Bezos and Bill Gates, but if current trends hold, he could lose his crown before the year is out.