This has been a bruising week for Tesla Inc. TSLA CEO Elon Musk, both on the personal and professional fronts, as the public spat with President Donald Trump takes a toll on the company’s stock, alongside the billionaire entrepreneur’s personal fortune.
What Happened: On Thursday, Tesla shares dropped 14.26%, wiping out $152 billion in market capitalization, marking its biggest single-day decline. This comes as the short, tumultuous friendship between Musk and Trump comes to an abrupt end, just six short months into the new administration.
Musk’s personal fortune fell in tandem, with the Bloomberg Billionaires Index reporting a $33.9 billion decline in his net worth, to $335 billion.
However, the Tesla and SpaceX CEO still remains the richest man in the world, with Mark Zuckerberg, the CEO of Meta Platforms Inc. META, ranking a distant second, with a net worth of $241 billion. Yet, Musk’s fortune has been subject to volatility this past year.
The billionaire entrepreneur’s net worth, largely anchored by his 20.3% stake in the world’s largest EV maker, followed by 42% and 33% in the privately-held SpaceX and xAI Holdings, respectively, has declined by $97.9 billion, or 22.6% year-to-date, largely the result of Musk’s growing political activism.
This rout on Thursday is the result of Musk’s criticism of Trump’s “One Big, Beautiful Bill,” with a series of posts on X. One such post early this week called it “a disgusting abomination.”
Trump has since responded to Musk’s verbal volleys, defending the GOP’s budget reconciliation bill, while saying that Musk should have voiced his opinions months ago.
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“I don’t mind Elon turning against me, but he should have done so months ago,” Trump said.
Why It Matters: Several prominent experts have backed Musk over his criticism of the “Big, Beautiful Bill,” echoing similar concerns.
Leading economist and author of the Black Swan, Nassim Taleb has stated that whatever people think of Musk, they should support his stance on the sweeping tax and spending bill, while stating that “The Trump budget is a lunacy, it will bankrupt America,” in a post on X.
Another economist and vocal Trump critic, Peter Schiff, praised Musk’s resolve, saying that “I’m so glad Elon is willing to call out the hypocrisy in the Republican party. He is a man of principle.”
Price Action: Tesla shares, as discussed above, were down 14.26% on Thursday, trading at $284.70, but are up 0.80% after hours.
According to Benzinga’s Edge Stock Rankings, Tesla fares well across the board, besides Value. It also offers a favorable price trend in the short, medium, and long term. Click here for deeper insights into the stock.
Photo Courtesy: Frederic Legrand – COMEO on Shutterstock.com
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