Billionaire entrepreneur and CEO of Tesla and SpaceX, Elon Musk, has witnessed a dramatic decline in his net worth, shedding an estimated $34 billion in a single day, Thursday, June 5, amid an escalating public spat with U.S. President Donald Trump. The sharp drop, as captured by the Bloomberg Billionaires Index, ranks among the most significant one-day losses ever recorded in Musk’s financial history.
The downturn followed a string of controversial posts from Musk on social media platform X (formerly Twitter), where he made explosive claims linking Donald Trump to late convicted sex offender Jeffrey Epstein. Musk also suggested that Trump had a decisive hand in shaping the outcome of the 2024 U.S. presidential election. These remarks quickly triggered a backlash from the former president, who responded with veiled threats targeting Musk’s business empire.
Trump, in his response, reportedly warned of potential revocation of federal contracts awarded to Musk’s companies, including major deals with NASA and the Pentagon involving SpaceX. He also floated the idea of scrapping electric vehicle tax incentives, a move that could hurt Tesla’s market performance significantly. The tax credit, currently offering up to $7,500 per EV under President Joe Biden’s Inflation Reduction Act of 2022, has played a critical role in boosting sales for electric vehicle manufacturers like Tesla.
In a counter-reaction to the threats, Musk made a bold declaration, stating that he might decommission SpaceX’s Dragon spacecraft, one of the company’s key assets currently servicing NASA’s missions to the International Space Station.
Amid the high-profile feud, Tesla’s share price plummeted by over 14% on the day, wiping out approximately $138 billion in market capitalisation. Of that, Bloomberg estimates $34 billion was lost directly from Musk’s personal stake in the company.
Commenting on the episode, White House Press Secretary Karoline Leavitt, in a statement to Business Insider, dismissed Musk’s outburst as frustration over policy disagreements. “This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted,” Leavitt said. “The President is focused on passing this historic piece of legislation and making our country great again.”
Musk’s impulsive online activity is not new to causing financial turbulence. In November 2021, he conducted a Twitter poll asking followers whether he should sell 10% of his Tesla shares. Following the outcome, 57% of over 3.5 million users voted “yes”, Tesla stock plunged by 16% in a single week, costing Musk roughly $50 billion in lost wealth at the time.
The recent clash with Trump has not only drawn political attention but also reignited concerns among investors about the volatility surrounding Musk’s public conduct and its direct implications for shareholder value. While neither Tesla nor SpaceX has issued an official statement on the unfolding situation, analysts say regulatory scrutiny and political pressure could intensify in the days ahead.
