Elon Musk’s net worth fell sharply by $34 billion on June 5, marking one of the largest single-day losses for the billionaire. The drop followed Musk’s controversial tweets accusing former President Donald Trump of having ties to Jeffrey Epstein and claiming Trump played a key role in the 2024 election victory. In response, Trump threatened to cut federal contracts with Musk’s companies and revoke Tesla’s electric vehicle tax credit, which had been introduced under President Joe Biden’s 2022 Inflation Reduction Act. This credit gave buyers up to $7,500 off electric car purchases, greatly benefiting Tesla and boosting its position in the U.S. market.
Musk retaliated by announcing plans to immediately decommission SpaceX’s Dragon spacecraft if the threats continued. White House Press Secretary Karoline Leavitt described Musk’s claims as an “unfortunate episode” driven by his dissatisfaction with the current legislation, emphasizing that the President remains focused on passing the bill and improving the country.
Tesla’s shares plunged over 14%, wiping out roughly $138 billion in the company’s market value. The Bloomberg Billionaires Index confirmed the $34 billion loss in Musk’s personal fortune after this sharp market reaction. This is one of Musk’s biggest single-day net worth declines, comparable to November 2021, when a Twitter poll about selling Tesla stock caused a 16% drop in share prices and a $50 billion personal loss.
