While Musk has experienced wealth fluctuations before, this episode is viewed as more severe due to the scale of Tesla’s valuation drop and the political uncertainties clouding his business empire.
Photo : AP
Elon Musk’s net worth fell by $33.9 billion in a single day after Tesla shares nosedived 14 per cent on Wall Street on 6 June 2025, , wiping out $150 billion from the company’s market value. The sudden collapse followed a highly publicised feud between Musk and former US President Donald Trump, sparking investor unease over potential disruption to electric vehicle (EV) incentives and government contracts. The Bloomberg Billionaires Index noted Musk’s wealth stood at $335 billion, still the highest globally, but down nearly $98 billion year-to-date.
Tesla’s share price closed at $284.70 apiece after the steep fall, dragging down broader markets: the Nasdaq Composite fell 162.04 points (0.83 per cent), the S&P 500 lost 0.53 per cent, and the Dow slipped by 0.25 per cent. The downturn comes at a time when Tesla had previously been riding high with a $1 trillion valuation just a day earlier—cementing its position as the world’s most valuable carmaker.
Although Musk’s equity in Tesla forms a major portion of his wealth, analysts caution the real impact could be greater once private ventures are factored in. SpaceX, his aerospace company, had been valued at $350 billion in December 2024 during an internal share sale, adding $50 billion to Musk’s fortune. However, market concerns are now turning towards potential fallout across his portfolio, including xAI Holdings and X (formerly Twitter), as Musk’s relationship with Trump deteriorates.
The friction intensified after Musk criticised Trump’s ‘big, beautiful bill,’ which reportedly rolled back critical tax benefits for EVs. Trump retaliated, suggesting Musk’s opposition stemmed from his businesses losing federal incentives, and allegedly hinted at revoking government contracts. This prompted sharp investor reactions, fearing political retribution might harm Tesla and SpaceX revenues.
Responding defiantly on X, Musk posted, “Go ahead, make my day,” and further inflamed tensions by claiming Trump’s name featured in Jeffrey Epstein-related documents. He then announced plans to retire SpaceX’s Dragon spacecraft—a crucial platform for US space missions—only to reverse the decision within hours.
While Musk has experienced wealth fluctuations before, this episode is viewed as more severe due to the scale of Tesla’s valuation drop and the political uncertainties clouding his business empire. The feud has cast doubt on the resilience of Musk’s federally linked contracts and reignited fears over the risks of relying heavily on government-backed EV growth.
Despite the blow, Musk retains his position atop the global wealth rankings, ahead of Meta’s Mark Zuckerberg at $241 billion. Analysts warn, however, that if political tensions escalate or tax policy shifts further against EVs, Tesla could face a prolonged period of volatility.
