Elon Musk's net worth plummets by $34bn in one day as Trump feud sparks Tesla sell off

Since the start of the year, Musk’s net worth has declined by $97.9 billion. He was the biggest daily loser on Bloomberg’s list of the world’s 500 richest people.

The conflict started when Musk launched a campaign to "kill" Trump's signature "Big, Beautiful Bill" just days after stepping down from his role at the Department of Government Efficiency in Washington.

Tesla shares fell by 18 per cent at one point as the row intensified. Trump said he was "very disappointed" after Musk criticised his administration’s tax policy bill. Trump alleged Musk was upset because the bill takes away tax benefits for electric vehicle purchases.

The legislation includes provisions to eliminate $7,500 (£5,850) electric vehicle tax credits, threatening to cost Tesla an estimated $3.2 billion (£2.5 billion) in profits.

The billionaire called the spending bill a "disgusting abomination" and began personally lobbying US senators to block its passage, signalling a dramatic rupture in his previously close relationship with the president.

Wall Street analysts have weighed in on the financial risks.

JP Morgan’s Ryan Brinkman wrote that "Tesla appears to have the most to lose from the shifting regulatory backdrop, perhaps to the tune of $3.2bn" (£2.5 billion), forecasting that the measures could halve Tesla’s profits this year.

The president’s 1,000-page bill proposes eliminating the $7,500 (£5,850) federal tax incentive for electric vehicle buyers and banning a similar scheme in California.

JP Morgan estimates that removing the federal credit alone would slash $1.2 billion (£940 million) from Tesla’s annual profits, while the California measure could wipe out a further $2 billion (£1.56 billion).

The Congressional Budget Office projects that the overall legislation would add $2.42 trillion (£1.89 trillion) to the federal deficit over the next decade — a figure Musk has cited repeatedly in condemning what he now refers to as the "Debt Slavery Bill".

The confrontation escalated sharply on Thursday when Trump threatened to cancel Musk’s federal contracts, a move that could devastate revenue for Tesla and SpaceX.

Musk responded on X with Clint Eastwood’s iconic line: "Go ahead, make my day."

He then claimed, without providing evidence, that Trump’s name appears in files related to the late financier Jeffrey Epstein.

Shortly after, Musk announced SpaceX would begin decommissioning its Dragon spacecraft, a key vessel used to transport astronauts and cargo to the International Space Station.

That announcement was reversed within five hours, but the market reaction was swift. Tesla’s shares fell 14 per cent to $284.70 (£222.00) on Thursday as investors began to grasp the scale of the political and commercial fallout.

When asked about Musk's behaviour, Trump told reporters: "I don't know if we'll have a great relationship any more."

The effects extend beyond Tesla. SpaceX, valued at $350 billion (£273 billion) in December, has received $22.5 billion (£17.6 billion) in Government contracts since 2000, according to Bloomberg Government data.

Trump’s threats could jeopardise further federal support for Musk’s businesses.

Neuralink — Musk’s brain implant company, recently valued at $9 billion (£7 billion) — could also face new regulatory challenges through agencies such as the FDA. Trump’s growing alignment with competing interests, including his own media company, adds further tension.

Tesla, once seen as a beacon for eco-conscious consumers, is now increasingly associated with MAGA politics, prompting backlash among left-leaning buyers and dampening European demand.

Musk’s net worth, though still standing at $334.5 billion (£262 billion) according to Bloomberg, has fallen $64 billion (£50 billion) this year alone, fuelled by collapsing stock prices and political instability.

The entrepreneur has vowed to "fire all politicians who betrayed the American people" in November’s midterms. Having donated $290 million (£227 million) to support Trump and Republican candidates last year, he remains the nation’s largest political donor.

According to NBC, Musk has been personally calling figures such as House Speaker Mike Johnson in an attempt to preserve the green tax credit, while amplifying opposition voices on X and urging Republican voters to flood Congress with objections.

Trump voiced his frustration, telling reporters: "I am very disappointed. Elon knew the inner workings of this Bill, better than almost anybody sitting here. All of a sudden he had a problem. I am very disappointed in Elon, I helped him a lot."