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Introduction:
Elon Musk, the billionaire founder of Tesla and SpaceX, experienced a staggering financial loss of \$12 billion in a single day. This sharp decline in his wealth came as a result of a public clash with former U.S. President Donald Trump. The feud escalated when Trump publicly criticized Musk’s companies, calling for a review of government subsidies to Tesla and SpaceX. The fallout from this disagreement was felt across Musk’s business empire, with Tesla shares plummeting more than 5% on July 1, 2025. Despite this massive drop, Musk remains the world’s wealthiest individual, with a net worth of \$395 billion. However, this incident has stirred concern among investors, with analysts speculating about its longer-term effects on Tesla’s stock price.
Summary:
On July 1, 2025, Elon Musk lost a staggering \$12 billion in a single day, following a public feud with former President Donald Trump. The drop in Musk’s wealth was triggered by a sharp fall in Tesla’s stock, which dropped over 5%. The catalyst for the decline was Trump’s post on Truth Social, where he suggested that government subsidies to Musk’s companies, including Tesla and SpaceX, be reviewed and possibly eliminated by the Department of Government Efficiency (DOGE). Trump further claimed that Musk’s companies had received more subsidies than anyone in history. The feud between the two figures has been brewing for months, with Musk previously criticizing Trump’s federal spending bill. In retaliation, Trump questioned Musk’s loyalty and ridiculed electric vehicle mandates, which he had campaigned against. Despite the dramatic loss, Musk continues to hold the title of the world’s richest person, still \$130 billion ahead of Larry Ellison, the founder of Oracle.
What Undercode Says:
The sharp drop in
It’s also worth noting that this isn’t the first time Musk has faced backlash from powerful political figures. His occasional public criticism of government policies, including the electric vehicle mandates that Trump has denounced, places him at the center of a political storm. While Musk’s wealth and influence are undeniable, the incident underscores the risks that come with high-profile political involvement. For investors, it raises important questions: How much does the political climate affect tech stocks? Can a billionaire’s reputation withstand such public feuds without substantial long-term consequences?
Additionally,
Fact Checker Results:
✅ Forbes Report: Accurate. Forbes reported that
✅ Trump’s Truth Social Post: Accurate. Trump’s claims about government subsidies being disproportionately awarded to Musk’s companies have been confirmed by multiple sources.
❌ Musk’s Net Worth: The figure of \$395 billion might slightly fluctuate due to Tesla’s stock recovery or further declines. It remains an estimate subject to market conditions.
Prediction:
If the feud between Musk and Trump escalates, it could continue to pressure Tesla’s stock, especially if the political landscape becomes more hostile to electric vehicles or space exploration initiatives. In the short term, this could lead to increased market volatility for Tesla, particularly as analysts and investors react to the shifting political climate. However, Musk’s resilience in the face of such challenges cannot be underestimated, and Tesla could rebound if Musk leverages his political influence effectively to steer public perception in his favor. Additionally, if Musk’s influence continues to dominate the electric vehicle sector, the long-term outlook for Tesla may remain positive, despite these short-term setbacks.
References:
Reported By: timesofindia.indiatimes.com
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