Elon Musk’s net value fell with a $ 33.9 billion on Friday, June 6, 2025, marking one of the losses in one of the most important day ever recorded, according to Bloomberg.
Tesla’s shares fell 14%, losing $ 150 billion in value, erasing all of its earnings for the year. The financial blow comes in the middle of an escalation between American president Donald Trump and Elon Musk, throwing a shadow on the Musk commercial empire and the confidence of investors.
Once considered a powerful alliance between business and politics, Musk’s relationship with Trump has collapsed in a bitter dispute that has an impact on the markets. The repercussions have created political uncertainty, shaken shareholders and fueled the long -term stability of the vast technological empire of Musk.
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Addressing journalists in Washington, Trump did not hold back, expressing the “deep disappointment” in Musk, a figure he had previously supported by granting federal support to Tesla and SpaceX, often avoiding administrative formalities to give Musk preferential access to decision -makers. This support, however, seems to have evaporated.
The rupture would have started on disagreements on the federal space policy and Musk’s frank criticism on Trump’s campaign platform in 2024. Musk, which previously directed the Ministry of Government Effectiveness (DOGE), condemned a new federal expenditure bill supported by Trump, calling it “disgusting abomination” due to its plan national deficit. He argued that the bill undermines its efforts to reduce federal spending.
One of Musk’s largest objections is the elimination by the bill for electric vehicle tax credits (EV), a decision that could have a direct impact on Tesla’s results. Trump, in response, accused Musk of opposing the bill on “personal interest”, citing Tesla’s dependence on these incentives to maintain global competitiveness.
The Rift has taken an even clearer turn, degenerating into personal attacks that saw Trump laugh at the appearance of Musk, also accusing him of being upset by EV mandates. Musk retaliated on his X platform, saying that Trump would have lost the 2024 elections without nearly $ 300 million in campaign support and amplification via social media. He also launched an incendiary accusation, suggesting that Trump’s name appeared in the files of Jeffrey Epstein – an undelicated affirmation which sparked a new controversy.
Trump retaliated by calling Musk “a man who lost his head” and launched the idea of cutting contracts and federal subsidies with Musk companies, including Spacex and Tesla. On Truth Social, he even proposed to put an end to these agreements as part of his broader plan to reduce public spending.
Tensions were built before this public explosion. Musk’s departure from his role as special government employee in May 2025 was partly due to frustrations with Trump’s pricing policies, to which Musk opposed because they affected his activities dependent on imported documents. In addition, Trump withdrew his appointment from Musk’s ally, Jared Isaacman, to lead NASA, a movement considered a slight against musk. The reports also suggest that the highly publicized role of Musk in the administration, including his influence on Doge and his public criticisms of other Trump advisers, caused friction in the inner circle of Trump.
The quarrel had significant implications with Musk threatening to take out the SpaceX Dragon spacecraft, a critic for NASA operations, which was then retracted, but however highlighted the challenges of their conflict, given the role of SpaceX in American and national security programs.
The quarrel came at a precarious moment for Musk. Bloomberg reports that he is confronted with a “rare convergence of threats”, including the reduction in brand loyalty, weakening global sales for Tesla, trembling sources of income and increasing legal and regulatory pressure.
In particular, chaos has added pressure while Musk is looking for new funding to stabilize its companies. Despite the storm, some investors remain prudently optimistic. They indicate that the history of musk such as the return of Tesla de Quasi-Efftive in 2019 and his reversal of X as signs that he could also resist this crisis.
