Elon Musk's Wealth Takes Major Hit Amid Escalating Feud with Donald Trump

Elon Musk's Wealth Takes Major Hit Amid Escalating Feud with Donald Trump

In a dramatic twist of events, Elon Musk saw his net worth plummet by a staggering $34 billion in just one day, marking one of the largest single-day losses in his financial history, as recorded by the Bloomberg Billionaires Index. This sharp downturn stemmed from an increasingly vocal and personal feud with former President Donald Trump, which pushed Musk to publicly criticize the GOP's proposed legislation known as the "big beautiful bill."

Prior to this escalation, Musk had limited his critiques to general remarks about the bill, focusing primarily on its implications. However, the tone of his criticism took a personal turn when Musk rebuffed Trump's claim that his objections were financially motivated, specifically regarding tax credits vital to Tesla's operations.

• Musk accused Trump of having connections with disgraced financier Jeffrey Epstein, linking past tweets from the president that seemingly aligned with Musk's opinions.
• He claimed that Trump was taking unwarranted credit for potentially influencing the upcoming 2024 election.

In reaction, White House Press Secretary Karoline Leavitt referred to Musk's public engagement as an "unfortunate episode," suggesting that his dissatisfaction stems from the bill not aligning with his personal policy preferences. She reiterated President Trump's focus on the legislation’s broader impact on the country, aiming to rally support for what he deems a historical initiative.

Trump's response was a pointed rebuttal, threatening to cancel federal contracts with Musk's ventures, a move that could have dire consequences for Musk's businesses. In defiance, Musk replied that he would terminate operations of SpaceX's Dragon spacecraft, demonstrating the intensity of their escalating animosity.

The fallout was immediate and severe, with Tesla shares dropping more than 14%. This decline accounted for an estimated $138 billion reduction in the company’s overall market value. Musk's personal loss of $34 billion reflects the volatile intersection of social media influence and accountability that often characterizes his public persona.

Interestingly, Musk has attempted to maintain that his social media postings do not affect the market performance of his companies. This claim stands in stark contrast to the actions taken against him by the Securities and Exchange Commission (SEC). Following Musk's notorious 2018 tweet about taking Tesla private at $420, he faced legal issues that culminated in a settlement requiring him to obtain prior approval for tweets relating to Tesla, as part of a regulatory arrangement dubbed "Musk's Twitter sitter.”

Despite Musk's efforts to have this stipulation dismissed, including an unsuccessful appeal to the Supreme Court in 2023, the existing agreement remains in place. As of now, neither Musk nor Tesla representatives have provided comments on the situation.

As the feud continues, it raises broader questions about the influence of personal conflicts on market dynamics and the responsibilities of influential public figures in managing their statements.