Tesla CEO Elon Musk saw his net worth plunge by $34 billion on Thursday as Tesla shares fell sharply following a public online clash with former U.S. President Donald Trump.
The feud, which played out across the two billionaires’ social media platforms, sent shockwaves through the market, causing Tesla stock to close with a 14% loss.
Tensions began earlier in the week when Musk criticized Trump’s “Big Beautiful Bill,” referring to the former president’s high-spending legislative agenda.
The tech mogul also abruptly stepped down from his advisory role as a “special government employee,” a move that triggered early signs of investor unease.
But Thursday’s dramatic sell-off came after the two men traded personal jabs online. Trump accused Musk of being “crazy” and claimed he asked the billionaire to leave his administration.
Musk retaliated by suggesting Trump’s 2016 election victory wouldn’t have happened without him, prompting Trump to threaten to revoke Musk’s government contracts. In response, Musk made a pointed accusation, alleging Trump’s name appears in the “Epstein files.”
The escalating exchange led to investor panic, tanking Tesla’s market value and shaving tens of billions off Musk’s personal fortune in a single day.
The fallout marks a stunning turn in what was once a seemingly close alliance. Musk had previously attended Trump’s rallies and even participated in joint press briefings at the White House.
But cracks began to show when Musk publicly criticized Trump’s controversial spending bill, calling it “disastrous for the government.”
Market analysts predict that the fallout from the feud could have lasting consequences for Tesla’s public image and Musk’s political relationships, particularly as the 2024 U.S. presidential election gains momentum.
