Elon Musk Loses $34,000,000,000 After Public Spat with Trump

© Kathy Hutchins / Vecteezy
On June 5, 2025, billionaire tech mogul Elon Musk saw a stunning drop in his net worth—approximately $34 billion vanished in a single trading session—after he publicly called out former President Donald Trump, igniting a fierce feud that rattled Wall Street and the corridors of power.
What Sparked the Fallout Between Elon Musk and Trump?
Earlier that week, Elon Musk criticized Trump’s newly passed “One Big Beautiful Bill” – a spending package that included cuts to EV tax credits. He condemned it as a “massive, outrageous, pork-filled…abomination.” Trump struck back swiftly, accusing Musk of “Trump derangement syndrome” and warning he’d face “serious consequences” if he shifted political support toward Democrats.

Moreover, Musk escalated the drama by publicly threatening to decommission SpaceX’s Dragon spacecraft and probing the possibility of launching a new political party to represent “the eighty percent in the middle.”
Markets Reacted, Fast and Furious
Tesla stock plunged 14%—its steepest single-day decline in over four years—erasing roughly $150 billion in market value. Bloomberg estimated the broader hit to Musk’s fortunes at around $34 billion, ranking as one of his largest single-day net-worth losses.
A Reuters report confirmed Tesla’s shares closed down 14.3%, as investors feared the unfolding political battle would jeopardize federal EV tax credits and government contracts.
Risks for Elon Musk Beyond Tesla
The clash has broader implications. Trump threatened to pull government contracts not just from Tesla, but also from SpaceX and Starlink—organizations that rely heavily on federal support. Analysts raised concerns about regulatory uncertainty surrounding Tesla’s autonomous vehicle ambitions and safe delivery of SpaceX missions, including those for NASA.
Some market watchers remain cautiously optimistic, citing long-term promise in Musk’s ventures like robotaxis and AI, but warn that political volatility may hurt investor confidence.
Fallout in the Political Arena
Once close allies, Musk and Trump are now on opposing tracks. Trump insisted he won’t reconcile, labeling Musk’s public comments a sign of lost loyalty. He also hinted that Musk would pay a price if he financially backs Democratic candidates.

Meanwhile, Musk toyed with founding his own party, gaining a wave of support on X, though political strategists warn that the bid for a “Tech Right” could fracture traditional GOP alliances.
Broader Implications for Elon Musk
This public showdown underscores how Billionaire influence is reshaping U.S. politics. The Reuters-backed commentary noted that Musk’s assertive political stance and spending may disrupt longstanding alliances and deepen partisan fractures.
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