Elon Musk experienced a staggering $34 billion loss in personal wealth on Thursday after a public dispute with President Donald Trump. Tesla shares dropped 14.3% during the trading session, wiping out roughly $150 billion in the company’s market value. This sharp decline marked the second-largest single-day loss ever recorded on the Bloomberg Billionaires Index.
Despite the significant setback, Musk remains the wealthiest individual in the world, with a net worth of approximately $334.5 billion.
Roots of the Conflict
The fallout began when Musk criticized Trump’s signature spending package, dubbed the “Big Beautiful Bill.” Musk condemned the legislation as a “disgusting abomination,” urging Republican lawmakers to reject it over concerns about escalating budget deficits.
On his social media platform X, Musk stated, “I just can’t stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong.”
In response, President Trump expressed disappointment with Musk during a White House meeting, suggesting Musk’s opposition was fueled by potential cuts to electric vehicle tax subsidies.
“Elon and I had a wonderful relationship. I’m not sure if that will remain,” Trump told reporters.
Escalation of the Feud
Trump later threatened on Truth Social to “terminate Elon’s Governmental Subsidies and Contracts,” referencing the billions of dollars in federal contracts held by Musk’s companies, especially SpaceX.
Musk fired back on X, claiming responsibility for Trump’s 2024 election victory and alleging connections between Trump and Jeffrey Epstein. He also threatened to retire SpaceX’s Dragon spacecraft, the only current U.S. vehicle ferrying crew to the International Space Station, though he later retracted that statement.
The feud marks a dramatic deterioration in what was once a close alliance. Musk had invested nearly $300 million supporting Trump’s campaign and served as head of the Department of Government Efficiency before stepping down last week.
Tesla’s stock decline occurred amid heavy trading volume, with around 100 million shares changing hands. Despite the losses, the company’s market capitalization remains near $1 trillion, keeping Tesla as the world’s most valuable automaker.
This $34 billion net worth drop ranks as Musk’s second-worst single-day loss, surpassed only by a $50 billion decline in November 2021, which followed a Twitter poll about selling Tesla shares.’
What The Author Thinks
Elon Musk’s sharp loss in wealth underscores the risks that come when business leaders engage publicly in heated political battles. While standing by personal convictions is admirable, such disputes can have immediate and far-reaching consequences for company valuation and investor confidence. In the highly scrutinized world of tech and finance, managing the intersection of politics and business requires careful strategy to avoid damaging both reputation and financial standing.
