Tech billionaire Elon Musk experienced one of the largest single-day financial losses in history following an intense and very public feud with President Donald Trump. In just 24 hours, Musk’s net worth plummeted by an eye-watering $34 billion, marking the second-largest loss ever recorded on the Bloomberg Billionaires Index.The only larger financial wipeout on the index occurred when Musk’s wealth dropped by a staggering amount in November 2021. While Musk remains the wealthiest person on Earth with a net worth still exceeding $300 billion, this significant dip represents a dramatic over 9% decline from his peak, which was nearly half a trillion dollars at the start of the year.On June 5, 2023, as the battle between Musk and Trump unfolded on social media, Musk’s flagship companies, Tesla and SpaceX, took a severe hit. Tesla’s stock plummeted by over 14 points, while SpaceX saw a nearly 5-point decrease. However, the real blow was to Musk’s personal wealth, which suffered devastating losses on a global scale.As reported by Bloomberg, “Minute by minute, post by post, Elon Musk’s very public, extremely online feud with President Donald Trump sliced into his vaunted status as the world’s richest person.”

This marked a significant downturn for Musk, whose wealth is primarily tied to Tesla and SpaceX, both of which are affected by public perception, especially during times of political volatility. The tensions between Musk and Trump came to a head as Musk became more vocal in his criticism of the President, leading to a cascade of financial consequences.While Musk remains at the top of the wealth rankings, this 9% drop is a stark reminder of the unpredictable nature of wealth, especially when linked to public figures embroiled in political controversy. For months, Musk was one of Trump’s most prominent supporters, contributing millions of dollars to his election campaign and taking on a leadership role within the administration. Musk headed the Department of Government Efficiency (DOGE) task force, an effort designed to overhaul the U.S. federal bureaucracy by purging the civil service and freezing government grants.

His deep involvement in Trump’s administration made Musk a significant political figure, one whose influence stretched beyond just the tech and business worlds.Musk’s public allegiance to Trump was unwavering at the start of their relationship, and he was integral to the success of Trump’s 2020 campaign. However, as the months wore on, tensions began to mount.Musk was reportedly furious when Trump pulled the nomination of one of Musk’s close allies to head NASA, a move that marked the beginning of their rift. Musk’s frustration with Trump deepened, especially as the President began to push forward his “big beautiful bill,” a sweeping piece of legislation focused on tax cuts, Medicaid cuts, and reductions in food stamps.Musk opposed the bill, arguing that it further destabilized the government’s fiscal footing and undermined the reforms DOGE was attempting to implement.

The fallout between Musk and Trump intensified over the last few weeks, with Musk becoming increasingly outspoken in his criticism of the President’s policies. Musk voiced his displeasure with Trump’s tax cuts and spending bill, which he believed would worsen the national deficit, further damaging the financial stability of the country.He also criticized Trump for his handling of various government initiatives and claimed that the President’s actions were undermining his own efforts to promote fiscal responsibility through DOGE.The tensions reached a new height when Musk accused Trump of being ungrateful for his support, stating on social media that “Without me, Trump would have lost the election.” Musk’s comments were aimed directly at the President’s reelection efforts, implying that his financial contributions and public endorsement were key factors in Trump’s return to the White House.Musk’s allegations of ingratitude were a direct challenge to Trump, who had once praised Musk for his role in the campaign.Trump, who rarely takes criticism lying down, responded in kind. On Truth Social, Trump called Musk “crazy” and claimed that Musk’s opposition to the tax bill was motivated by personal gain. “Elon was wearing thin,” Trump said. “I asked him to leave. I took away his EV mandate that forced everyone to buy Electric Cars that nobody else wanted.”Trump’s public dismissal of Musk was a significant blow to their relationship, and Musk quickly fired back, calling the President’s remarks “an obvious lie.”

As the feud between Musk and Trump escalated, Musk began to take more extreme measures in his public statements. He called for Trump’s impeachment and even suggested that the President was involved in criminal activity.In a highly controversial tweet, Musk implied that Trump was a child predator, further fueling the already intense political war between the two men. Musk’s accusations against Trump were unsubstantiated but served to deepen the divide between the tech mogul and the President.Trump, for his part, retaliated by threatening to terminate the government contracts that SpaceX and Tesla rely on. These contracts are crucial to both companies, particularly SpaceX, which has received billions in funding from NASA and the U.S. military for its space exploration projects.Trump’s threats put Musk in a difficult position, and the financial markets took notice. The value of Musk’s companies dropped precipitously, reflecting the growing uncertainty surrounding his relationship with the President and the potential fallout from their public clash.

The financial consequences of Musk’s public feud with Trump were immediate and severe. Tesla’s stock, a major component of Musk’s wealth, dropped by more than 14 points in a single day, wiping out billions in market value. SpaceX, though privately held, also saw a decline in valuation, with many investors expressing concerns about the future of the company’s government contracts.Musk’s personal wealth took a massive hit, with a $34 billion decrease in his net worth, making it the second-largest loss in the history of the Bloomberg Billionaires Index.Despite the losses, Musk remains the world’s richest individual, with a net worth still well over $300 billion. However, the loss marks a sharp contrast to his previous peak of nearly $500 billion at the start of the year. This dramatic drop highlights the volatility of Musk’s wealth, which is closely tied to his companies and their relationship with the U.S. government.As his feud with Trump continues to unfold, the long-term impact on Musk’s personal fortune and the future of SpaceX and Tesla remains uncertain.

Musk’s wealth may have taken a hit, but his influence over U.S. tech, space, and policy remains significant. However, the fallout from his very public feud with Trump raises questions about his future role in the U.S. political landscape. Musk’s ability to navigate this ongoing conflict will determine not only the fate of his businesses but also his long-term influence on American politics.As the situation continues to evolve, Musk’s relationship with Trump—and the potential political ramifications of their fallout—will be watched closely by investors, political observers, and the public alike. With $34 billion erased from his personal net worth in a single day, Musk’s battle with Trump has made clear that even the world’s wealthiest individuals are not immune to the consequences of their political decisions and personal conflicts.The stage is set for an even more intense showdown between the two powerful figures in the months to come.