Elon Musk Loses $34 Billion in a Day Amid Clash with Donald Trump

 

Elon Musk, CEO of Tesla and SpaceX, experienced a staggering $34 billion drop in his net worth on Thursday, marking one of the largest single-day losses ever recorded for an individual. This financial setback coincided with a highly publicized dispute between Musk and U.S. President Donald Trump.

The conflict ignited after Musk vocally opposed Trump's "Big Beautiful Bill," a sweeping spending package the president championed. Musk criticized the bill as a "disgusting abomination" that would "massively inflate the already staggering deficit to 2.5 trillion," warning it could trigger a recession. In response, Trump accused Musk of being upset over the removal of electric vehicle tax credits—key incentives for Tesla buyers—and rescinded the nomination of Musk ally Jared Isaacman to lead NASA.

The market reacted sharply: Tesla shares plunged over 14 percent, wiping out approximately $138 billion in market capitalization. Musk's personal stake accounted for $34 billion of that loss. This episode adds to a history of Musk's social media activity triggering major financial swings, including a $50 billion net worth loss in 2021 after a Twitter poll.

White House Press Secretary Karoline Leavitt condemned Musk's reaction, stating, "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."

Despite the financial blow, Musk remains world's wealthiest individuals. However, this incident underscores the volatility of his fortune, heavily tied to Tesla's stock performance, and highlights the potential risks of high-profile disputes with political figures.