At a Glance

Musk loses $34 billion in a day as Tesla shares plunge 14.2%.
Feud erupts after Trump axes EV tax credits, targeting Tesla’s bottom line.
Musk backs Trump impeachment, escalating political rift and investor unease.

Elon Musk, the world’s richest man, lost nearly $34 billion in a single day, according to Bloomberg, following a highly publicized fallout with former President Donald Trump. The clash, marked by sharp exchanges and political undertones, quickly escalated beyond social media, drawing intense public and market attention.

What began as a disagreement over policy quickly turned personal, sending ripples through Wall Street and shaking up Silicon Valley. The two powerful figures, once unlikely allies, turned on each other in a public spat that revealed just how fragile their alliance had always been.

Tesla market value sinks below $900 billion

By the close of trading Thursday, Tesla shares had tumbled 14.2 percent, erasing over $150 billion in market value. Musk’s net worth slid from $368.9 billion to $335 billion, one of the sharpest single-day declines in recent history. Tesla’s valuation fell below $900 billion, and Musk’s losses for the year swelled to nearly $100 billion, more than any other billionaire so far.

But those figures were only part of the story. The real drama played out online, where Musk tore into Trump’s flagship policy proposal, mockingly referring to it as the “big, beautiful bill,” and called it a “disgusting abomination.” Trump, never one to back down from a fight, retaliated swiftly, threatening to cut federal ties with Musk’s companies, including SpaceX, which works closely with the Pentagon.

The situation escalated further. Speaking at the White House alongside German Chancellor Friedrich Merz, Trump said, “I’m very disappointed because Elon knew the inner workings of this bill. I’ve helped Elon a lot.” And to some extent, he had a point.

Trump, Musk rift grows over subsidies

Since Trump’s reelection, Musk had been one of his most vocal supporters. He donated more than $250 million to Trump’s campaign and even briefly joined the administration as head of a newly created Department of Government Efficiency. Under Musk’s oversight, the department pushed through aggressive cuts, reduced red tape, and centralized federal data systems.

That alliance ended abruptly last week. Musk stepped down from his government role, saying he needed to be “back 24/7” at Tesla and SpaceX. His return to the private sector came just as Trump’s new bill eliminated a key tax credit for electric vehicles, a direct blow to Tesla’s bottom line.

“Elon’s upset because we took the EV mandate,” Trump told reporters. “They want us to keep handing them billions in subsidies.” It couldn’t have come at a worse time for Tesla, which was already under pressure from Chinese competitors and growing concerns about Musk’s polarizing behavior. The company’s stock has now lost nearly a quarter of its value this year.

From alliance to all-out chaos

As analysts rushed to revise their forecasts, the public spat deepened. Musk posted on X, his social media platform, in support of efforts to impeach Trump. He even backed the idea of Senator JD Vance stepping in.

Then came a more explosive claim: Musk suggested Trump’s name appeared in sealed government documents related to Jeffrey Epstein. Though unverified, the accusation set off a wave of speculation in political circles.

And the feud kept getting uglier. Trump mocked Musk’s appearance in a recent photo, jabbing at his black eye and lack of makeup. Musk shot back, ridiculing Trump’s “spray tan hypocrisy.” What once looked like a strategic alliance had now become a messy and very public breakdown.

Their relationship was always an uneasy one. Musk’s tech-driven worldview and Trump’s populist style had little in common beyond a desire for influence and media attention. That was enough to hold things together, until it wasn’t. Now, the fallout has been costly: tens of billions lost, investor confidence shaken, and rising concerns that Musk’s political entanglements are starting to hurt his businesses.

Trump-Musk rift signals growing instability

Donald Trump has taken a relatively smaller hit, about $202 million, leaving his net worth at $5.4 billion, according to Forbes. That still places him among the world’s richest, ranked 691st.

But while the financial loss may be manageable, the political cost could run deeper. His decision to publicly lash out at Elon Musk, one of his most influential supporters, signals a level of unpredictability that markets tend to avoid, especially in times of uncertainty.

The standoff shows no signs of cooling. It reflects a larger shift in how influence operates today, where CEOs aren’t just business leaders but also political players, and former presidents wage their fights as much online as they do through official channels.

For now, Musk remains the wealthiest person on the planet. But with Tesla facing pressure, SpaceX under increased scrutiny, and Trump now threatening to distance himself, Thursday’s market dip may just be the beginning. What lies ahead could reshape more than just their fortunes, it might change the way power and loyalty play out in public life.