On June 6, 2025, Elon Musk’s net worth fell by $33.9 billion after Tesla shares dropped 14%, wiping out $150 billion in market capitalisation. The plunge followed tensions with former U.S. President Donald Trump and investor concerns over the loss of EV tax incentives and potential government contract cancellations.
Elon Musk, the CEO of Tesla, Inc. and founder of SpaceX, witnessed a staggering decline in his personal fortune on June 6, 2025, as shares of Tesla tumbled 14.26%, resulting in a $150 billion hit to the company’s market capitalisation. According to the Bloomberg Billionaires Index, Musk’s net worth dropped by $33.9 billion in a single day, taking his total to $335 billion.
Despite the loss, Musk retains the title of the world’s richest person, ahead of Meta founder Mark Zuckerberg, whose wealth stands at $241 billion. Year-to-date, Musk has lost close to $97.9 billion.
The sharp decline in Tesla’s share price is attributed to mounting investor anxiety over Musk’s escalating public feud with former U.S. President Donald Trump, coupled with concerns about the removal of electric vehicle (EV) tax incentives. Trump recently proposed a bill that could end these benefits, which are seen as critical to Tesla’s sales performance.
The Tesla stock rout also rippled through broader U.S. markets. The tech-heavy Nasdaq Composite dropped by 162.04 points (0.83%) to 19,298.45. The S&P 500 slid 0.53% to 5,939.30, while the Dow Jones Industrial Average declined 0.25% to 42,319.74.
Tesla, headquartered in Palo Alto, California, remains the world’s most valuable carmaker, with a valuation that stood at $1 trillion just a day before the drop. However, the massive one-day decline has renewed scrutiny over Musk’s political commentary and its effect on shareholder confidence.
The broader implications for Musk extend beyond Tesla. His private aerospace company SpaceX, recently valued at $350 billion, and his AI venture xAI Holdings, could also be affected. In December, SpaceX added $50 billion to Musk’s net worth after an insider share sale, partly on optimism over favorable ties with the Trump administration.
Tensions intensified after Musk publicly criticized Trump’s proposed legislation, calling it a threat to innovation. Trump retaliated by suggesting Musk’s government contracts be revoked — a move that could deal a blow to both Tesla and SpaceX.
Musk escalated the conflict with a social media post saying, “Go ahead, make my day,” and hinted at Trump’s possible connections to Jeffrey Epstein. Later, he briefly announced the decommissioning of SpaceX’s Dragon spacecraft — a critical U.S. space transport link — only to reverse that decision within hours.
With political friction and market volatility colliding, Musk faces a precarious financial and reputational landscape, as the world watches how the billionaire entrepreneur navigates the fallout.
