• Elon Musk's net worth drops by $34 billion following a clash with Donald Trump.
• The feud led to a 14% decline in Tesla's stock price, wiping out about $138 billion in market value.
• Criticism centered around Trump's "big, beautiful bill" and accusations regarding ties to Jeffrey Epstein.
• Musk's previous social media activity has previously impacted his wealth and company valuation.
• The fallout raises concerns over future government contracts for Musk's companies.

Elon Musk, CEO of Tesla and SpaceX, faced a staggering $34 billion loss in net worth, marking one of his largest single-day wealth declines, following a heated public feud with President Donald Trump. This conflict began when Musk criticized Trump's "big, beautiful bill," leading to a swift backlash from the president that escalated tensions between the two. According to the Bloomberg Billionaire Index, this fallout saw Tesla's stock tumble more than 14%, wiping out roughly $138 billion from the company's total market value, with the day's events tallying as the second-largest wealth loss for Musk to date, following a similar incident in 2021.

The tension heightened when Trump accused Musk of opposing the legislation primarily because it would eliminate tax credits beneficial to Tesla. Musk retaliated by claiming that Trump’s characterizations were inaccurate and mentioned past communications that implied Trump's support for Musk. As the dispute evolved, Trump threatened to revoke government contracts held by Musk's companies, asserting, "The easiest way to save money in our Budget... is to terminate Elon’s Governmental Subsidies and Contracts," according to reports from multiple outlets, suggesting a dangerous turn in their relationship that could have lasting implications for Musk's ventures.

This confrontation has raised serious questions about the stability of Musk’s financial empire, particularly as the fallout may not fully reflect ongoing damages to the value of Musk's private enterprises, which are increasingly significant to his wealth. As Musk attempts to navigate these turbulent waters, analysts express concerns that the repercussions of this feud may extend beyond just market fluctuations, potentially endangering future business prospects for both Tesla and SpaceX amid a more hostile regulatory environment.