Tesla Loses $152,000,000,000 as Elon Musk’s Feud with Trump Erupts, Shrinking Company’s Value and CEO’s Net Worth

Tesla’s share price took a dramatic dive on Thursday, falling by 14.2% and wiping out an astonishing $152 billion from the company’s market value, as a public feud between Elon Musk and President Donald Trump spiraled out of control. The catastrophic loss, the result of escalating tensions between the two men, has had far-reaching consequences for both the electric vehicle giant and Musk’s personal fortune.

At the close of the market, Tesla's stock was down sharply, dropping in response to the heated public exchange between Musk and Trump. The former political allies have publicly traded barbs on their respective social media platforms, with both men exchanging threats, insults, and accusations throughout the day.

As a result, Musk’s net worth took a massive hit, plummeting by $8.73 billion, according to the Bloomberg Billionaires Index. Tesla’s value fell to approximately $900 billion, marking a stark contrast to its peak in recent months.

The unfolding drama has drawn attention to the volatile nature of Musk’s business empire, especially as his companies—Tesla and SpaceX—are heavily reliant on government contracts, many of which are at risk due to the ongoing conflict with the Trump administration.

The tension between Musk and Trump has been simmering for some time but erupted into a full-scale public feud after Trump took to his Truth Social platform. The President hinted that he might terminate the vast government subsidies and contracts Musk’s companies receive, including those for Tesla and SpaceX, which have long been significant beneficiaries of federal funding.

“Maybe it’s time to pull the plug on those government deals,” Trump wrote, targeting Musk’s financial reliance on federal contracts. These subsidies are essential for Tesla’s growth, particularly in supporting the company’s electric vehicle programs. Trump’s words set off a chain reaction that sent Tesla’s stock plummeting, as investors worried about the ramifications of a loss of these lucrative contracts.

Musk, not one to back down from a confrontation, fired back in typical fashion. He threatened to decommission SpaceX’s Dragon spacecraft, which is currently used by NASA for transporting astronauts and cargo to the International Space Station (ISS). This was a stark warning to the Trump administration, as NASA is a key client for SpaceX, which has received billions of dollars in government contracts.

Musk also called for Trump’s impeachment, accused him of mismanaging the country’s economic policies, and even made a controversial claim about Trump’s alleged ties to the notorious sex offender Jeffrey Epstein.

Despite his earlier threats, Musk later walked back his comments, stating that SpaceX would not be decommissioning the Dragon spacecraft after all. However, the damage had already been done. Musk’s social media outbursts and the ensuing market reaction left investors reeling, especially given the $152 billion loss in Tesla’s market value.

The consequences of this public feud were immediately felt in the financial markets. Tesla’s stock dropped by over 14%, wiping out a massive $152 billion from the company’s valuation.

The dramatic slide in the company’s share price reflects the uncertainty surrounding Musk’s public and political conflicts, as well as concerns about the company’s future profitability in an increasingly volatile political and economic climate.

This loss also had a direct impact on Musk’s personal wealth. As the majority shareholder of Tesla, Musk saw his net worth drop by $8.73 billion.

While Musk remains the wealthiest person on the planet, with a net worth exceeding $300 billion, this setback is significant, marking a 9% drop from his peak at the beginning of the year. His wealth has fluctuated dramatically, often tied to the performance of Tesla’s stock, which is highly sensitive to investor sentiment and regulatory scrutiny.

Tesla has faced increasing pressure in recent months, with declining sales and a growing backlash from consumers, many of whom are put off by Musk’s association with far-right politics. The company’s association with Musk, a figure who has made headlines for his controversial statements and political affiliations, has turned some customers away.

As a result, Tesla’s growth has been slower than anticipated, and its stock price has been hit by concerns about its long-term sustainability.

In addition to the political fallout from Musk’s feud with Trump, Tesla is facing challenges related to the regulatory environment. The company’s efforts to build a self-driving robotaxi, a product that Musk has touted as essential for Tesla’s future, have also faced significant setbacks. The product is still in its early stages, and Musk is heavily reliant on government approval to bring it to market.

Without regulatory approval, Tesla’s ambitious plans for a fully autonomous fleet could be delayed, further harming its stock price and Musk’s financial standing.

Musk and Trump’s relationship has been complicated from the start. In the early years of Trump’s presidency, Musk was one of his staunchest allies.

Musk contributed millions of dollars to Trump’s 2024 election campaign and played an influential role in shaping the President’s policies, particularly on government efficiency and tax cuts. Musk even led the Department of Government Efficiency (DOGE) task force, working closely with the Trump administration to streamline government operations and freeze grants.

However, over time, Musk’s relationship with Trump began to deteriorate. Musk was reportedly angered when Trump pulled the nomination of one of Musk’s close allies to lead NASA. In addition, Musk has become increasingly vocal in his criticism of Trump’s policies, particularly on fiscal matters. Musk opposed Trump’s tax bill, which eliminates electric vehicle tax credits and adds $2.3 trillion to the national deficit. Musk believed the bill undermined the fiscal discipline that DOGE was trying to implement.

As their personal and professional tensions grew, Musk began to criticize Trump more openly. The public feud between the two men reached its peak with Musk’s recent accusations against Trump, including his call for impeachment and allegations of criminal activity.

The fallout from this public clash has now spilled over into the financial markets, where Tesla’s investors are nervous about the potential impact of the ongoing political conflict.

The immediate financial fallout from Musk’s feud with Trump raises serious questions about the future of Tesla and Musk’s broader business empire. With $152 billion lost in a single day, investors are beginning to question how much longer Tesla can rely on Musk’s influence and leadership.

The company’s future hinges on the success of its self-driving technology and its ability to navigate regulatory challenges.

As Musk and Trump continue their public battle, the repercussions of their conflict will be felt across the broader tech and political landscape. Musk’s businesses, including Tesla and SpaceX, are at risk of facing retaliation from the Trump administration in the form of canceled contracts, increased scrutiny, or new regulations.

At the same time, Musk’s outspoken political views and controversial public statements have created a polarized environment, one where his personal wealth and business empire are increasingly vulnerable to external forces.

For now, Musk remains the richest person in the world, but the outcome of his feud with Trump could have long-lasting implications for his financial future, his companies, and his influence on U.S. policy. The world is watching closely to see how this political and financial drama unfolds.