The clash of titans turned into a financial disaster. On Thursday, June 5, the financial world was rocked by a remote war of words between Donald Trump and Elon Musk—two towering figures as powerful as they are addicted to buzz.
The immediate result: Tesla shares plummeted by 14%, wiping out $152 billion in market capitalization. One single day, one ego-driven spat, and just like that, Elon Musk’s personal net worth dropped by nearly $34 billion. A crash diet, Wall Street style.
At the root of this market earthquake: a verbal showdown between the American president and his former billionaire “friend.” Since parting ways with Trump, Musk hasn’t missed a chance to take jabs at the U.S. administration.
Trump, never one to back down, fired back with a bombshell on Truth Social: “The easiest way to save billions is to cut off subsidies to Musk’s companies.” Translation: the public funding faucet may soon be turned off.
And that’s the real battleground. While Musk likes to cultivate the image of a self-made genius, his empire has been partially built on the back of $38 billion in government support over the years.
In 2024 alone, SpaceX, Tesla and other ventures received $6.3 billion. When Trump talks about pulling the plug, markets hear one thing: red alert. And they retaliate.
The net worth of the world’s richest man, previously estimated at $369 billion, dropped to $335 billion yesterday, according to the Bloomberg Billionaires Index.
He’s not exactly on the breadline yet, but the plunge is dizzying. At this pace, Musk may soon need to buy his Teslas pre-owned.
Investors, for their part, aren’t laughing. Beyond the personality clash, this feud could jeopardize Tesla’s regulatory future—especially in the realm of autonomous vehicles, where the blessing of federal agencies remains vital.
The ultimate irony: in 2024, following Trump’s election victory, Tesla stock had soared by over 80%. But it seems love is short-lived on the Silicon Beltway.
What was once a marriage of convenience has now become a costly economic divorce—emotionally and on the markets.
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