Tesla and SpaceX CEO Elon Musk saw his net worth drop by $34bn on Thursday, following a heated public exchange with United States President Donald Trump.
The drop, reported by the Bloomberg Billionaires Index on Friday, ranked among the largest single-day losses ever recorded for an individual.
The financial setback followed Musk’s vocal opposition to the latest Trump spending bill, which the president called a ‘Big Beautiful Bill’ and criticism of new tariffs, which he claimed would trigger a recession later this year.
Trump, in turn, accused Musk of being upset over the removal of electric vehicle tax credits, a key incentive for Tesla buyers and rescinded the nomination of Musk ally Jared Isaacman to lead NASA.
Trump retaliated by threatening to sever government contracts with Musk’s businesses, including SpaceX, which currently holds federal agreements worth tens of billions of dollars.
Musk responded defiantly, posting, “Go ahead, make my day.”
In a retaliatory move, Musk announced he would decommission the Dragon spacecraft operated by SpaceX.
Commenting on the situation, White House Press Secretary Karoline Leavitt criticised Musk’s reaction.
“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.
“The President is focused on passing this historic piece of legislation and making our country great again,” she said, referencing the President’s current legislative efforts.
Tesla shares fell sharply by more than 14 per cent amid the controversy, leading to an estimated $138bn drop in market capitalisation. A significant portion of this loss, $34bn, was attributed to Musk’s personal stake in the company.
This incident adds to a growing list of instances in which Musk’s social media activity has had major financial consequences. In November 2021, a Twitter poll he conducted led to a sharp decline in Tesla’s stock price and cost him $50bn in net worth within a week.
