Elon Musk and US President Donald Trump’s very public and messy spat has cost the tech billionaire a loss of a whopping $34 billion from his personal net worth, a report by Bloomberg said. Their feud played out minute-by-minute on social media, with accusations flying back and forth. By the end of the day, Musk had suffered the second-biggest one-day wealth loss in Bloomberg Billionaires Index history. The only bigger drop that Musk has seen was his own wipeout in November, 2021.
It all kicked off shortly after Musk left Washington. Out of nowhere, he started rallying support to shut down Trump’s flagship policy, the so-called “Big, Beautiful Bill.”
That move didn’t sit well with Trump. The president fired back hard, even floating the idea of ending government contracts with Musk’s companies, Tesla and SpaceX. If that happens, it could seriously hurt their income.
Musk’s bold response
Musk wasn’t about to back down. He fired off a tough reply on X saying, “Go ahead, make my day,” quoting Clint Eastwood. Then he went even further, accusing Trump of being linked to Jeffrey Epstein (without offering any proof) and saying SpaceX would start phasing out its Dragon spacecraft, a key shuttle for NASA.
This is a big shift from how things looked after Trump’s 2024 win. Back then, Musk’s wealth was close to $500 billion and everyone thought his ties to Trump would be good for business. He was even put in charge of a government efficiency department. But Musk officially left Washington last week and things have soured quickly since.
Trouble for Tesla
Tesla is now facing some serious problems. Its image has shifted, once a favourite of green-minded buyers, it’s now seen by many as being too close to Trump’s MAGA politics. That’s turning off its original base.
On Thursday, Tesla shares fell 14%, ending the day at $284.70.
As things heated up, Musk took to X again and asked his followers if it was time to create a new political party that represents “the 80% in the middle.” He seems to be positioning himself as a political force outside the current system.
That $34 billion loss might just be the start. It only counts Musk’s public holdings like Tesla stock. But much of his fortune is tied to private companies, like SpaceX, which was valued at $350 billion in December.
That valuation partly depended on expectations of continued government support, something now in doubt thanks to the feud.
The fight with Trump could hurt more than just Tesla and SpaceX. Musk’s AI and social media company xAI Holdings might struggle if Trump’s media company sees it as a rival.
Even Neuralink, Musk’s brain-implant startup could be targeted. It just raised $650 million at a $9 billion valuation. But government approval from agencies like the FDA could get trickier if Trump gets involved.
What’s the bill Musk hates?
Musk recently blasted a government spending bill passed by the House, calling it a “disgusting abomination.” The bill could add over $2 trillion to the deficit in the next 10 years, according to the Congressional Budget Office.
It also aims to remove tax breaks for electric cars, something Trump supports. Musk sees this as a direct attack on Tesla. JPMorgan analysts say the changes could cost Tesla around $1.2 billion in profits for the year.