Elon Musk’s ongoing feud with former President Donald Trump has triggered a major financial setback, with \$34 billion wiped from his net worth in a single day — the second-largest one-day loss ever recorded on the Bloomberg Billionaires Index. The only larger loss also belongs to Musk, in November 2021. Despite the drop, he remains the world’s richest person with a net worth of \$334.5 billion.
The rift escalated after Musk publicly opposed Trump’s newly passed “Big, Beautiful Bill,” urging lawmakers to kill the legislation, which eliminates electric vehicle tax credits and adds significantly to the federal deficit. Trump responded by proposing the cancellation of Musk’s government contracts, a potential blow to revenue streams at Tesla and SpaceX, which together have secured \$22.5 billion in federal contracts since 2000.
Musk reacted defiantly, referencing Clint Eastwood’s “Go ahead, make my day” on X, and later made unsubstantiated claims linking Trump to Jeffrey Epstein. At one point, Musk even said SpaceX would retire its Dragon spacecraft—critical for ferrying U.S. astronauts to the ISS—before backtracking hours later.
The feud marks a sharp reversal from the post-2024 election period, when Musk’s companies surged amid expectations of cooperation with Trump. Now, Tesla’s brand has become polarising, with Thursday’s 14% stock drop reflecting broader investor unease. JPMorgan analysts estimate that removing EV tax credits alone could cost Tesla \$1.2 billion in annual profit.Beyond Tesla and SpaceX, Musk’s other ventures like xAI and Neuralink may also come under pressure if Trump targets them through regulatory channels. Neuralink recently raised \$650 million at a \$9 billion valuation, but faces scrutiny from agencies like the FDA. Meanwhile, SpaceX, valued at \$350 billion in a recent share sale, may also see investor sentiment shift if tensions persist. Musk is now floating the idea of launching a new centrist political party, further fueling uncertainty around his ventures amid rising political hostility.
