On Thursday, Elon Musk experienced a decline of $33.9 billion in his net worth due to his highly publicized disagreement with U.S. President Donald Trump, making it one of the most significant single-day decreases for this tech tycoon.
It marked the second-largest decline ever recorded on the Bloomberg Billionaires Index, which monitors the wealth of the globe's 500 wealthiest individuals, with the largest decrease having occurred when Musk experienced his downturn in November 2021.
The significant media-covered confrontation between Musk and Trump It started when Musk criticized Trump’s key initiative known as the "Big, Beautiful Wall." The tension escalated further when Trump proposed halting governmental deals linked with Musk’s businesses, potentially impacting the income streams of both Tesla and SpaceX, as reported. Bloomberg .
Facing off against Trump might present Musk with numerous regulatory and political hurdles as well. Tesla's initiative to introduce autonomous cars lacking both steering wheels and pedals hinges significantly on the U.S. Department of Transportation, responsible for setting vehicle safety regulations. Additionally, this department is presently looking into Tesla’s driver assistance system known as “Full Self-Driving” after a deadly crash occurred.
With tensions rising, traders heavily sold off Tesla shares amid growing worries about the repercussions for Musk’s corporate conglomerate. Reuters reported.
By the close of trading, the company's stock price dropped sharply by 14%, erasing approximately $150 billion from its market capitalization.
Even after the recent downturn, Musk remains the globe's wealthiest individual, boasting an approximate fortune of $334.5 billion.
In 2021, Musk experienced a loss of $50 billion when he initiated an online survey on Twitter regarding whether he ought to divest 10% of his stake in Tesla. With over 57% approval from approximately 3.5 million participants who responded affirmatively, this led to a significant decline in Tesla’s share price by about 16%, consequently reducing his wealth by around $50 billion, as reported. Business Insider .
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