Winning Bizness Desk
Mumbai. Elon Musk, the world’s richest businessman, saw his net worth plummet by ₹3 lakh crore in just one day following a heated public spat with former US President Donald Trump. According to Bloomberg, this is Musk’s largest single-day wealth drop since November 2021. His total wealth now stands at \$334 billion. The fall came as Tesla’s shares nosedived and the company’s market cap shrank by nearly ₹13 lakh crore.
Trump-Musk social media clash spooks investors
The dramatic drop was triggered by a war of words between Trump and Musk on social media. Trump publicly threatened to cancel government contracts awarded to Musk’s company SpaceX, triggering panic among investors. The uncertainty created fears of regulatory crackdowns and possible ripple effects across Musk’s companies, including Tesla. As a result, Tesla’s shares dropped by 14.26% on June 5, closing at \$284.70. However, the stock bounced back by 7% the next day.
Once allies, now at odds over policy differences
Trump and Musk were once political allies. Musk supported Trump’s 2024 re-election campaign with both money and public endorsement. But recently, tensions escalated when Musk criticised Trump’s much-publicised domestic policy and tax bill—labelled as the “Big Beautiful Bill” by Trump. Musk called the bill “very bad” for the US economy. This criticism did not sit well with Trump, who retaliated with threats to withdraw key government contracts and apply stricter regulations on Musk’s ventures.
Trump calls Musk ‘crazy’; Musk hits back
In a series of exchanges, Trump lashed out by calling Musk “crazy” and claimed he had no interest in speaking with him. He even stated he might end subsidies and federal contracts to Musk’s companies. In response, Musk claimed that without his support, Trump would have lost the election and failed to gain a Senate majority. The bitter tone of the exchanges has fueled further uncertainty around Musk’s businesses, especially SpaceX and Tesla.
Underlying tensions brewing for weeks
Although the conflict flared publicly this week, underlying friction had been building for several days. Musk had been openly critical of Trump’s policies for some time, while Trump had remained silent—until Thursday, when he voiced his anger in public. The spat then rapidly intensified, playing out across social media and triggering widespread investor concern.
Room for reconciliation still exists
Despite the harsh words, some signs hint at a possible truce. A user on social media platform X suggested the two reconcile, to which Musk replied, “You’re not wrong,” indicating a slight softening of tone. The two have a history of working together, with Trump once appointing Musk to a government advisory role. For now, however, tensions remain high.
Summary in 7 Points
- Elon Musk loses ₹3 lakh crore in a day after Trump spat.
- Tesla’s market cap drops by ₹13 lakh crore on June 5.
- Trump threatens to cancel SpaceX contracts, spooking investors.
- Musk and Trump fell out over a controversial tax bill.
- Trump called Musk “crazy”; Musk hit back with election claims.
- The feud intensified publicly but had been building privately.
- Musk shows slight openness to truce via social media response.
