A 14% drop in Tesla shares results in a $34 billion loss for Musk as tensions escalate with former President Trump.
Elon Musk has experienced an unprecedented financial setback, losing approximately $34 billion in personal wealth in just 24 hours following a significant drop in
Tesla's stock.
The shares fell by 14%, impacting Musk's fortune considerably, despite his standing as the richest person in the world, with a current net worth of $334.5 billion.
This dramatic decline came on the heels of Musk's public condemnation of a new tax plan proposed by former President
Donald Trump, which includes the removal of federal subsidies for electric vehicles.
Musk described the proposal as a "repugnant abomination," highlighting the critical nature of these subsidies—up to $7,500 per vehicle—as essential for sustaining
Tesla's sales volume in the United States.
The market responded swiftly to the news, with
Tesla's market capitalization shrinking by more than $153 billion in a single day, marking the largest daily decline in the company's history.
On the day of this fallout,
Tesla did briefly recover, registering a 6% rise, stabilizing around $300 per share.
The circumstances surrounding these events starkly contrast the period following Trump's electoral victory, when Musk's wealth peaked at nearly $500 billion.
As the conflict between Musk and Trump escalates, concerns grow regarding the potential repercussions for Musk's other ventures, such as xAI Holdings and Neuralink, should governmental contracts be rescinded.
Trump has expressed disappointment towards Musk, stating that their previously strong relationship has deteriorated into a contentious exchange of insults and threats, contributing to volatility in Musk's companies.
The public discord reflects a larger narrative marked by powerful personalities and ambitions, with Musk's critical remarks about Trump's fiscal policies exacerbating an already strained relationship.
The future implications for
Tesla and Musk's portfolio remain uncertain as tensions continue to mount.