Elon Musk Loses $34 Billion Amid Public Feud with Donald Trump

Post by : Rinkal Joshi

Photo : AFP

Elon Musk lost $34 billion in one day, which is the second-biggest drop ever recorded in the Bloomberg Billionaires Index that tracks the richest 500 people in the world. Only Musk’s own record loss in November 2021 was bigger.

This huge loss happened during a very public and intense online fight between Musk and former President Donald Trump. The conflict started when Musk, just days after leaving his government role, pushed hard to stop a law that Trump supports, called the "Big, Beautiful Bill."

Even though Musk still remains the richest person in the world with a fortune of $334.5 billion, this fight has made things more difficult for him. Trump threatened to end Musk’s government contracts, which would hurt Musk’s companies like Tesla and SpaceX, where Musk earns a lot of money.

In his typical bold style, Musk responded on social media with a famous movie quote, “Go ahead, make my day.” He also claimed, without proof, that Trump’s name was linked to files about Jeffrey Epstein, a late financier with a criminal history.

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Musk then said that SpaceX would stop using its Dragon spacecraft, which is very important for the US because it helps send cargo and astronauts to the International Space Station. However, after about five hours, Musk changed his mind and decided not to stop the spacecraft missions.

This sudden clash is very different from the months after Trump won the 2020 election. At that time, Musk’s net worth was near $500 billion because people thought his relationship with Trump would help his businesses. Musk even had a government position related to improving efficiency but left Washington last week.

Tesla, Musk’s electric car company, is now facing challenges. It used to be popular with people who care about the environment, but now some see it as connected to Trump’s political ideas, which has turned away many traditional customers. As a result, Tesla’s stock price dropped 14% to $284.70.

On social media, Musk asked his followers if it was time to start a new political party in America to represent the majority of people in the middle.

Even though Musk lost a lot of money on that day, this drop doesn’t show the full picture because it doesn’t count losses in his private businesses, which are a big part of his wealth.

SpaceX is the most valuable private startup in the world, worth about $350 billion after a recent share sale. This value partly came from hope that Musk’s ties with Trump’s government would help. Since 2000, SpaceX and Tesla have earned $22.5 billion from government contracts.

Musk also owns other businesses like xAI Holdings, which focuses on artificial intelligence and social media. These companies might also lose value because Trump owns a competing company, Trump Media & Technology Group.

Even Musk’s brain implant company, Neuralink, which recently raised $650 million and is valued at $9 billion, could face problems if Trump tries to stop it through government agencies like the Food and Drug Administration.

Earlier this week, Musk criticized a spending bill passed by the House of Representatives, saying it would add too much debt to the government. The Congressional Budget Office expects the bill to add $2.42 trillion to the national debt over the next ten years.

This bill also plans to remove tax credits for electric vehicles, which Trump said is why Musk is upset. Experts at JPMorgan Chase estimate this change could reduce Tesla’s profits by about $1.2 billion for the year.

Overall, the fight between Musk and Trump has caused big changes for Musk’s money and businesses, and it’s still unclear what will happen next.

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