NEW YORK –
Elon Musk’s net worth plunged $34 billion in a single day –
the second-worst wealth collapse in history – after a volcanic public feud with
President Donald Trump over a $2.4 trillion spending bill, triggering market
panic and threatening the future of Tesla and SpaceX.
The Trigger: A Five-Word War
The crisis erupted when Musk
mobilized his 187 million X followers to “kill” Trump’s “Big, Beautiful Bill,”
calling it a “disgusting abomination” that would balloon national debt.
Trump retaliated by threatening to terminate all federal contracts with
Musk’s companies. The billionaire fired back with a Clint Eastwood quote: “Go
ahead, make my day.”
Collateral Damage
|
Asset |
Impact |
|
Tesla |
Shares crashed 14% ($284.70) |
|
SpaceX |
Musk briefly threatened to decommission Dragon
spacecraft (critical for ISS missions) |
|
Musk’s Wealth |
$34B loss (Bloomberg Index) – now $334.5B |
Why the Stakes Are Unprecedented
$22.5B at Risk: Total federal contracts
to Tesla/SpaceX since 2000.
EV Tax Credits: Trump’s bill eliminates
them – costing Tesla $1.2B in annual profit (JPMorgan).
SpaceX Valuation: December’s $350B
valuation relied on Trump-era contracts.
The Epstein Gambit
Musk escalated by alleging Trump’s name appeared in Jeffrey
Epstein’s files – without evidence – further inflaming
tensions.
Political Fallout
Musk polled X users about creating a “new centrist
party” as Tesla’s MAGA shift alienates liberal buyers:
“Is it time for a party representing the 80% in
the middle?”
The move signals a rupture from his 2021 peak ($500B net worth) when Trump
named him head of the Department of Government Efficiency.
Domino Effect
Trump could weaponize agencies against Musk’s empire:
Neuralink: FDA could delay brain-implant
approvals ($9B startup).
xAI: Trump Media & Technology
Group may rival his AI ventures.
Starlink: Pentagon contracts face
scrutiny.
This isn’t just a billionaire spat
– it’s a thermonuclear war with trillion-dollar implications.
As policy battles turn personal, Musk’s empire faces its most dangerous moment
since the 2018 “funding secured” scandal. With Trump vowing retribution and
Musk taunting back, markets brace for more carnage.
“When elephants fight, the grass suffers.”
– African Proverb
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