Byline: Fiona Wexler, Senior Technology Correspondent
Date: June 6, 2025
Tesla CEO Elon Musk’s net worth has reportedly dropped by $34 billion, according to a Bloomberg report from June 6, 2025. This sharp decline is attributed to a public feud with former President Donald Trump, which has negatively impacted Tesla’s stock price and investor confidence.
Elon Musk, the billionaire entrepreneur known for his ventures with Tesla and SpaceX, has seen a dramatic drop in his personal wealth following a growing conflict with former President Donald Trump. The dispute erupted after Musk criticized Trump’s proposed $2.4 trillion fiscal bill, which he argued would negatively affect American innovation and infrastructure. The outspoken CEO went so far as to call for Trump’s impeachment, a move that sparked a strong reaction from the former president.
In response, Trump threatened to cut government subsidies for Musk’s companies, particularly Tesla. These subsidies, which Musk has long defended as crucial for the development of sustainable technologies, are an integral part of Tesla’s financial model. The president’s threat has created uncertainty in the markets, affecting the stock price of Tesla, which has been one of the most valuable companies in the world in recent years.
Impact on Tesla and Musk’s Personal Wealth
Tesla’s stock price has taken a significant hit since the feud began, with its market value falling sharply. This decline has impacted Musk personally, as much of his wealth is tied up in Tesla’s stock. The $34 billion drop in his net worth marks one of the most substantial losses for a CEO in recent memory, underscoring the delicate relationship between a company’s performance and its leader’s public persona.
Experts point out that such public disputes between high-profile figures can have far-reaching consequences, especially for a company like Tesla, where Musk’s reputation is inextricably linked to the brand. Tesla has not only revolutionized the electric vehicle industry but has also benefited from Musk’s public image as a visionary entrepreneur. However, the ongoing feud with Trump has now brought Tesla into the spotlight for all the wrong reasons.
Investor Concerns and Market Reaction
The feud has raised significant concerns among Tesla’s investors, with many questioning the company’s long-term prospects. Stockholders are increasingly worried that Musk’s controversial actions could destabilize the company’s operations. While Musk has built Tesla into a globally recognized brand, his unorthodox approach to leadership—coupled with his tendency to engage in public spats—has led some investors to re-evaluate their positions.
Investors typically value stability and predictable leadership, but Musk’s volatility has introduced a level of uncertainty that the market is struggling to digest. With Tesla’s growth trajectory slowing in recent months, the added pressure of a high-profile political feud is creating an environment of doubt.
Sarah Williams, a financial analyst who tracks Tesla’s performance, noted that “such public disputes have the potential to undermine investor confidence in a company’s leadership.” She added, “Musk’s decision to engage so aggressively with Trump has put both his and Tesla’s future under a cloud of uncertainty.”
The Role of Government Subsidies
Tesla has historically relied on government incentives to help drive its green energy initiatives. These subsidies have been a critical factor in the company’s ability to scale production and offer electric vehicles at competitive prices. The threat of losing these government subsidies as a result of the feud with Trump has sent shockwaves through the company’s financial structure.
Without these subsidies, Tesla would face higher production costs, which could ultimately lead to higher prices for consumers and reduced market share. This could prove disastrous for the company, especially given the increasing competition in the electric vehicle space from both established automakers and new startups.
Musk has been an outspoken advocate for government support, arguing that it is essential for fostering innovation in clean energy technologies. However, with Trump now suggesting the possibility of cutting these subsidies, Tesla may face a rough road ahead if the political dispute escalates further.
Musk’s Path Forward
The ongoing feud with Trump has left Musk with a difficult choice: double down on his confrontational style, or seek to repair the damage caused to Tesla’s reputation and financial stability. Analysts suggest that Musk may need to recalibrate his approach, particularly if he wants to regain the trust of investors who have become increasingly wary of his leadership.
Some experts recommend that Musk focus on rebuilding trust with both the public and the investor community. This could involve a more strategic and measured approach to political engagement, particularly given the role that government support plays in Tesla’s operations. Musk may also need to demonstrate greater stability in his leadership style to allay investor concerns and restore confidence in Tesla’s long-term growth potential.
As Musk continues to navigate the fallout from the feud, many are watching closely to see how he will manage his company’s reputation and financial future. Tesla’s success has been tied to Musk’s ability to innovate and push boundaries, but whether his personal conflicts will prove to be a lasting distraction remains to be seen.
