Musk’s wealth reached historic heights in December when he became the first person to boast a net worth of $400 billion. That astronomical figure continued to climb until Dec. 17, when Musk’s wealth peaked at $486.4 billion, thanks to SpaceX’s $350 billion valuation and investors’ big bet on Musk’s expansive role in President Donald Trump’s inner circle.

Just two months later, Musk’s net worth has been humbled by Tesla’s share price, which has cratered 27% in less than two months. Tesla saw its first year-over-year sales loss in more than a dozen years, selling 20,000 fewer vehicles in 2024 than the year before, as it competes with China’s more affordable BYD. The Chinese automaker has been able to bolster AI driving technology Tesla has continually promised but has yet to deliver on, in part due to regulatory hurdles. 

This year hasn’t looked rosy for Musk’s EV company: Tesla registrations nosedived 63% last month in France, the European Union’s second-largest EV market. Sales likewise plunged 60% in Germany, even as Europe’s demand for EVs showed signs of a recovery.

Musk’s Tesla stock ownership and options make up about 60% of his net worth, while his 42% stake in SpaceX is worth about $136 billion, according to Bloomberg. Tesla did not respond to Fortune’s request for comment.

Tesla’s peaks and valleys 

Tesla’s share price has not just been a reflection of the car company’s lackluster few months. Its stock is down for a fifth straight day, coinciding with a Musk-led consortium’s unsolicited $97.4 billion bid for OpenAI. Musk was a cofounder and early investor in the AI behemoth, but CEO Sam Altman immediately rejected the offer, instead proposing to buy social media platform X from Musk for $9.74 billion.

Investors’ optimism in Tesla has been a roller coaster since the election, when the stock was immediately boosted 14% by hopes that a Trump administration would be friendly to American EVs. Trump’s proposed tariffs on China could prevent a chunk of overseas competition from entering the U.S. market, while his threat to eliminate subsidies for alternative energy sources would likely have more of a negative impact on smaller EV companies.

Despite rocky sales, that confidence continued into Tesla’s earnings as Musk hinted at a potential for $10 trillion in eventual revenue from the company’s humanoid Optimus robots and continued to lean on hype around self-driving vehicles.

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“It’s going to be a golden age for Tesla and Musk,” Dan Ives, Wedbush Securities managing director, said after Tesla’s January earnings call. “This is the most bullish I’ve ever heard Musk.”

However, Musk’s status as Trump’s right hand—as well as his facilitation of a stunning wave of firings as head of the Department of Government Efficiency—has soured some consumers. 

“Tesla’s biggest challenge in 2025 isn’t technology—it’s perception,” Jacob Falkencrone, global head of investment strategy at Saxo Bank, said in a research note on Tuesday. “Elon Musk’s political baggage is now weighing on sales, brand loyalty, and investor confidence.”

Stifel analyst Stephen Gengaro agreed Musk’s political involvement could spell bad news for Tesla. Along with Morning Consult, Stifel found last month that Tesla’s net favorability was at 3%, nearing an all-time low since polling began in 2018. Stifel last week lowered its target price from $492 to $478, though maintained its buy rating.

With DOGE, “making headlines recently regarding its efforts to streamline government agencies, options of [Tesla’s] CEO Elon Musk have taken a turn for the worse along political affiliations,” Gengaro said in a recent note.