Things have gotten rocky.
Tesla stock tanks after Musk slams Trump-backed GOP bill; sparks national conversation on spending and subsidies
Billionaire entrepreneur Elon Musk, CEO of Tesla and SpaceX, suffered a staggering $34 billion drop in his net worth on Thursday after a highly publicized verbal clash with President Donald Trump. The financial hit came as Tesla stock plunged 14%, driven by investor jitters over the political fallout.
According to the Bloomberg Billionaires Index, Musk’s fortune now stands at $334.5 billion—still making him the wealthiest man alive. But the sharp decline marks the second-largest single-day drop in the index’s history, raising eyebrows across Wall Street.
Tesla Stock Falls Amid Political Firestorm
The turmoil began after Musk publicly denounced the GOP’s much-discussed “One Big Beautiful Bill Act”—a sweeping reconciliation package that Trump has praised as a bold step toward fiscal renewal. Musk blasted the bill as a “disgusting abomination”, warning it would balloon federal deficits and harm future generations.
President Trump fired back during a press conference with German Chancellor Friedrich Merz, expressing “deep disappointment” and accusing Musk of hypocrisy, suggesting Tesla had benefitted heavily from government subsidies. Trump hinted he may “terminate Elon’s Governmental Subsidies and Contracts” in an effort to cut wasteful spending.
Musk and Trump Trade Blows on Social Media
The feud unfolded on Musk’s X platform and Trump’s Truth Social, with both leaders exchanging sharp words. Musk claimed the bill was “passed in the dead of night” without proper review, adding he was never given the chance to see it before it passed.
Trump responded by alleging that Musk was asked to step away from his federal advisory roles and noted that Tesla’s electric vehicle tax breaks might soon be under review.
Musk Still Tops Global Wealth Rankings
Despite the setback, Elon Musk remains far ahead of his closest rivals. He’s over $90 billion richer than Meta CEO Mark Zuckerberg and more than $100 billion wealthier than Amazon founder Jeff Bezos, whose fortunes stand at $241 billion and $229 billion respectively.
Musk’s net worth last crossed the $300 billion mark in November 2024, peaking at a historic $439.2 billion just one month later.
What’s Next for Musk—and Taxpayers?
While Musk briefly suggested SpaceX might decommission its Dragon spacecraft, he later walked back the statement. The billionaire’s future government ties—and the role of taxpayer-funded contracts—are now under renewed scrutiny.
This high-profile clash between a powerful private innovator and a fiscally conservative administration has sparked broader questions about corporate subsidies, accountability, and the true cost of “green” investments.
