Elon Musk’s fortune has suffered a serious setback by losing a whooping $34 billion drop in his net worth on Thursday, June 5. This loss is one the biggest single-day losses suffered by Elon Musk, according to the Bloomberg Billionaires Index.
Elon Musk
Elon Musk, a major ally of President Trump who played a major role in President Trump’s election last year who appointed to manage the US’s Department of Government Efficiency (DOGE). Things got bad between Elon and Trump when Elon could not get what he wanted to be included in the One Big Beautiful Bill among other policies issues disagreement with President Trump.
Elon Must later resigned his appointment in Trump government to face his business empire.
Few days ago, Elon engaged in a volatile exchange with former President Donald Trump, fuelled by a series of controversial tweets from the Tesla and SpaceX CEO.
Musk had posted claims linking Trump to Jeffrey Epstein and hinted that Trump played a major role in securing the 2024 presidential victory. The accusations sparked immediate backlash from Trump, who retaliated by threatening to revoke federal contracts with Musk’s companies.
Elon Musk and Trump
He also warned of removing the electric vehicle (EV) tax credit—introduced under President Biden’s 2022 Inflation Reduction Act—which has been a significant financial incentive for Tesla customers, offering up to $7,500 off EV purchases.
In a sharp response to Trump’s threat, Musk declared he would decommission SpaceX’s Dragon spacecraft.
“This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted,” said White House press secretary Karoline Leavitt in response to Business Insider’s inquiry regarding Musk’s Epstein-related tweet. “The President is focused on passing this historic piece of legislation and making our country great again.”
The fallout sent Tesla shares tumbling more than 14%, resulting in an estimated $138 billion loss in market capitalization. Bloomberg estimates that $34 billion of that decline came directly from Musk’s personal holdings.
This isn’t the first time Musk’s tweets have had financial consequences. In November 2021, he ran a Twitter poll asking if he should sell 10% of his Tesla stock. Over 57% of 3.5 million participants voted “yes,” prompting a 16% drop in Tesla shares that week and wiping out $50 billion from Musk’s net worth.
