Elon Musk experienced a dramatic loss in personal wealth on Thursday, June 5, with his net worth plummeting by a staggering \$34 billion in just one day, as reported by the Bloomberg Billionaires Index. This sharp decline ranks among the largest single-day financial setbacks for any individual in recent memory.

The financial fallout came in the wake of a heated and highly publicized clash between Musk and former U.S. President Donald Trump. The dispute began when Musk took to social media to post a series of provocative tweets. In one of them, he insinuated that Trump had connections to the late financier Jeffrey Epstein, and in another, he suggested that Trump was instrumental in shaping the outcome of the 2024 presidential election. These bold statements triggered swift retaliation from Trump, who threatened to cancel all federal contracts with Musk’s companies, including SpaceX and Tesla.

In addition, Trump signaled his intent to revoke the electric vehicle tax credits—a key component of the Inflation Reduction Act introduced by President Joe Biden in 2022. This policy provides consumers with up to \$7,500 in incentives for purchasing electric vehicles and has played a critical role in driving Tesla sales. The potential removal of this benefit placed further pressure on investor confidence.

Musk escalated the situation further by announcing plans to decommission the SpaceX Dragon spacecraft, which plays a vital role in ferrying astronauts to the International Space Station under a multibillion-dollar government contract. Although he later appeared to soften this stance, the damage to investor sentiment had already been done.

Tesla’s stock price plunged by over 14% following the controversy, wiping out roughly \$138 billion in market value. Of that, Musk personally lost an estimated \$34 billion, a stark reminder of the risks tied to his public persona. This incident mirrors past episodes, such as the 2021 Twitter poll that led to a \$50 billion drop in his net worth after selling Tesla shares.