Elon Musk Faces $113 Billion Loss as He Nears Parting Ways with DOGE

Elon Musk has hinted at stepping away from the Department of Government Efficiency (DOGE), but his involvement seems to have cost the billionaire a lot. As per the Bloomberg Billionaire Index, Musk's personal wealth dropped by 25% since January 17, resulting in a loss of $113 billion.

As for his luxury EV firm, Tesla, the shares of the automobile company witnessed a drop of over 40% on Nasdaq. While the stock has recovered from some of its losses, Tesla shares are still trading in the red territory.

During the recent earnings call, the billionaire said that his job in Washington was "mostly done" and that his "time allocation to DOGE" might drop significantly in the coming months time. He also made it clear that he won't spend more than one to two days per week in the administration.

Undoubtedly, Musk's private companies, including SpaceX and XAI, are doing well in terms of getting fresh funding. However, his social firm X (formerly Twitter) is struggling with high debt levels.

His listed EV firm has already recorded a 71% decline in profit levels alongside a double-digit decline in overall EVs.

Tesla Struggles

Tesla's earnings per share (EPS) dropped to 27 cents as against an estimated 39 cents. The overall revenue figure also took a sharp hit. Tesla's revenue dropped over 9% to $19.34 billion from $21.3 billion recorded in the corresponding quarter of the previous fiscal.

The automaker is already facing intense competition from Chinese rival BYD, which has experienced a sharp surge of over 30% in its share price, so far this year. The Chinese EV maker has already surpassed Tesla as the leading global seller. It has outperformed Tesla both in terms of volume and revenue.

Plus, Jeff Bezos-backed Amazon is also entering the EV sector by supporting an electric vehicle startup called 'Slate Auto,' which claims to offer electric trucks at relatively low cost.