Elon Musk’s Fortune Takes a Sharp Decline Amid Public Clash with Donald Trump
Elon Musk, currently the richest person globally, saw a significant reduction in his wealth on Thursday following an intense public dispute with former President Donald Trump. This confrontation sparked a steep fall in Tesla’s stock price,the electric vehicle manufacturer under Musk’s leadership.
Market Fallout and Financial Consequences
By late Thursday, Elon Musk’s net worth had fallen below $400 billion, dropping roughly $26.7 billion to an estimated $388 billion based on recent market evaluations. This financial setback coincided directly with Tesla shares tumbling amid escalating tensions between the two figures.
Tesla’s share price plummeted by 14%, losing about $47 per share to close at $285-a sharp decline during what was otherwise a stable trading day for the broader market. The bulk of this drop occurred after both parties exchanged pointed remarks: Musk claimed that Trump would not have secured reelection without his backing, while Trump fired back by accusing Musk of having “Trump derangement syndrome.”
Tesla Stock Movement in Viewpoint
This downturn pushed Tesla shares to their lowest level in four weeks and marked a decrease exceeding 40% from their record high reached last December. Prior optimism among investors centered around expectations that Musk’s rapport with Trump could lead to favorable regulatory changes benefiting Tesla’s autonomous driving technology.
Analyst Perspectives on Regulatory risks
Dan Ives, an analyst at Wedbush Securities, emphasized growing investor concerns about how this public feud might influence regulatory policies affecting Tesla’s self-driving programs under any future management shaped by Trump’s political stance.
A Historic Drop for Tesla Shares
The losses recorded on Thursday rank among the most severe single-day declines since Tesla went public in 2010-placing it within it’s top eleven worst trading days ever experienced.
The High Cost of the Musk-Trump feud
The financial damage endured by Elon Musk equates to nearly five times Donald trump’s net worth-recently estimated at approximately $5.5 billion-highlighting just how impactful this market reaction has been as a direct result of their conflict.
Tesla’s Market Capitalization Contracts Significantly Compared to Rivals
The more than $150 billion erased from Tesla’s valuation during this single session exceeds the combined market caps of Ford Motor Company, General Motors, and rivian-the three largest publicly traded American automakers after Tesla-underscoring how ample these losses are within the automotive industry landscape.
A Wider Look at Share Price Trends As January 2025
Since President Trump’s inauguration earlier this year-which drew attention due to Elon Musk’s controversial salute-tesla stock has declined approximately 33%. In contrast, major benchmarks like the S&P 500 have remained relatively stable with less than a 1% drop over that same period.
