Elon Musk, the world’s richest person, lost $12 billion in just one day after tensions grew between him and US President Donald Trump. The drop in Musk’s wealth happened on July 1 when Tesla’s stock fell over 5%, according to Forbes.
The reason? Trump posted on his social media platform, Truth Social, suggesting that the US government should cut subsidies (financial support) to Musk’s companies — Tesla and SpaceX. He even said that Musk might have to “go back to South Africa” if the government support is taken away. Trump claimed Musk had received “more subsidies than any human in history” and asked for an investigation by the Department of Government Efficiency (DOGE).
Despite this massive loss, Musk still remains the richest person in the world, with a net worth of around $395 billion — that’s $130 billion more than Larry Ellison, the founder of Oracle.
The situation escalated when Musk criticized Trump’s new government spending plan and even threatened to start a new political group called the “America Party” if the bill passes in the Senate.
Trump hit back by saying Musk was never really loyal and called electric vehicle (EV) laws “ridiculous.” Trump added, “Electric cars are fine, but not everyone should be forced to own one.”
Financial analyst Dan Ives commented on the issue saying, “This BFF friendship has now turned into a soap opera,” and it’s affecting Tesla’s stock performance.
