Elon Musk’s net worth plummeted by a staggering $33.9 billion on Friday, June 6, 2025, marking one of the most significant single-day losses ever recorded, according to Bloomberg.
Tesla stocks tumbled by 14%, losing $150 billion in value, erasing all of its gains for the year. The financial hit comes amid an escalating feud between U.S. President Donald Trump and Elon Musk, casting a long shadow over Musk’s business empire and investor confidence.
Once seen as a powerful alliance between business and politics, Musk’s relationship with Trump has unraveled into a bitter dispute that’s impacting the markets. The fallout has created policy uncertainty, rattled shareholders, and fueled speculation about the long-term stability of Musk’s vast tech empire.
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Speaking to reporters in Washington, Trump didn’t hold back, voicing “deep disappointment” in Musk, a figure he had previously supported by granting federal backing to Tesla and SpaceX, often sidestepping red tape to give Musk preferential access to decision-makers. That support, however, appears to have evaporated.
The rupture reportedly began over disagreements on federal space policy and Musk’s outspoken criticism of Trump’s 2024 campaign platform. Musk, who previously led the Department of Government Efficiency (DOGE), has condemned a new federal spending bill supported by Trump, calling it a “disgusting abomination” due to its projected $2.4 trillion addition to the national deficit. He argued that the bill undermines his efforts to reduce federal spending.
One of Musk’s biggest objections is the bill’s elimination of electric vehicle (EV) tax credits, a move that could directly impact Tesla’s bottom line. Trump, in response, accused Musk of opposing the bill out of “self-interest,” citing Tesla’s reliance on these incentives to maintain global competitiveness.
The rift took an even sharper turn, escalating into personal attacks which saw Trump mock Musk’s appearance, also accusing him of being upset about the EV mandates. Musk fired back on his platform X, claiming Trump would have lost the 2024 election without his nearly $300 million in campaign support and amplification via social media. He also lobbed an incendiary accusation, suggesting Trump’s name appeared in Jeffrey Epstein’s files—an unverified claim that ignited further controversy.
Trump retaliated by calling Musk “a man who has lost his mind” and floated the idea of cutting off federal contracts and subsidies to Musk’s companies, including SpaceX and Tesla. On Truth Social, he even proposed terminating those deals as part of his broader plan to reduce government spending.
Tensions had been building before this public blowup. Musk’s departure from his role as a special government employee in May 2025 was partly due to frustrations with Trump’s tariff policies, which Musk opposed because they affected his businesses reliant on imported parts. Additionally, Trump withdrew his nomination of Musk’s ally Jared Isaacman to lead NASA, a move seen as a slight against Musk. Reports also suggest Musk’s high-profile role in the administration, including his influence over DOGE and his public criticisms of other Trump advisors, caused friction within Trump’s inner circle.
The feud has had significant implications with Musk threatening to decommission SpaceX’s Dragon spacecraft, critical for NASA’s operations, which was later retracted, but however highlighted the stakes of their conflict, given SpaceX’s role in U.S. space and national security programs.
The feud has come at a precarious time for Musk. Bloomberg reports he is facing a “rare convergence of threats,” including declining brand loyalty, weakening global sales for Tesla, shaky revenue streams, and growing legal and regulatory pressure.
Notably, the chaos has added pressure as Musk seeks new funding to stabilize his companies. Despite the storm, some investors remain cautiously optimistic. They point to Musk’s track record such as Tesla’s comeback from near-collapse in 2019 and his turnaround of X as signs that he may weather this crisis as well.