In one of the largest single-day wealth drops in recent history, Elon Musk’s net worth plummeted by a staggering $33.9 billion on Friday, June 6, according to Bloomberg. The massive hit came amid a very public and escalating feud between Musk and former U.S. President Donald Trump, sending shockwaves through both the political and financial arenas.
Once considered one of the most powerful alliances between politics and business in modern America, the unraveling of the Musk-Trump relationship has created serious uncertainty around Musk’s business empire—raising questions about leadership, regulatory backing, and future government partnerships.
From Political Allies to Public Adversaries
Speaking to reporters in Washington, Trump did not hold back, expressing “deep disappointment” in Musk. He reminded the public of his prior support, having granted Musk’s companies access to billions in federal contracts and regulatory favors during his administration. These included fast-tracked approvals for SpaceX, Tesla, and other ventures at a time when traditional bureaucratic channels might have slowed their growth.
But that goodwill appears to have evaporated.
The rift reportedly began over disagreements about federal space exploration policy and Musk’s sharp criticism of Trump’s 2024 campaign positions. What began as subtle jabs on social media soon escalated into a full-on public feud. Matters took a critical turn when Musk threatened to halt SpaceX resupply missions to the International Space Station—a move he quickly reversed, but not before damaging trust in the private-public partnership model he helped pioneer.
Market Meltdown and Financial Fallout
The fallout was swift and severe. Tesla shares plunged by 14%, dragging down Musk’s net worth to approximately $335 billion, according to Bloomberg’s Billionaires Index. That marks a total year-to-date loss of nearly $98 billion, or 22.6% of his personal fortune.
This decline underscores growing investor concerns about:
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Leadership instability
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Legal entanglements over Musk’s compensation and governance
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Political distractions that continue to pull focus from core business operations
Musk owns around 13% of Tesla, and much of his wealth is locked in exercisable stock options—many of which are now under legal scrutiny. A Delaware court ruling recently voided his 2018 compensation package, further clouding Tesla’s leadership future and compensation structure.
Trouble Across Musk’s Empire
While Tesla remains the most visible flashpoint, Musk’s broader empire isn’t immune from turbulence.
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SpaceX, Musk’s most valuable asset, is privately valued at $350 billion, with Musk controlling about 42% through a trust. However, its perceived independence from political volatility is now being questioned, particularly given its reliance on federal contracts from NASA and the U.S. Department of Defense.
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xAI Holdings, a merger between Musk’s AI startup xAI and his social media platform X (formerly Twitter), is valued at $73 billion. But investors are increasingly skeptical about its strategic direction, citing confusion over its business model and lack of cohesion between AI and social networking.
Complicating matters further, Musk has reportedly pledged a significant portion of his Tesla and SpaceX shares as collateral for personal loans, a financial setup that magnifies risk in volatile market conditions.
What’s Next for Musk?
Despite the chaos, Musk remains the world’s richest man, but the margin is narrowing. Analysts say much will depend on Tesla’s next earnings report, SpaceX’s federal contract stability, and whether Musk can navigate the legal and political storms swirling around him.
With the U.S. heading into another presidential election cycle and Musk increasingly entangled in both policy and controversy, the road ahead could be bumpier than ever for the billionaire entrepreneur whose empire helped shape the last decade of innovation.
As markets adjust and alliances shift, the Musk-Trump rift could mark a turning point—not just for two powerful figures, but for the entire intersection of big tech and government in the U.S.
