Elon Musk Loses $27 Billion After Tesla Shares Drop During Fight With Trump
Elon Musk, the billionaire born in South Africa, just lost around $27 billion from his personal wealth. This happened after Tesla’s stock price dropped by 14% in one night, causing the company to lose $150 billion in value. This big loss came while Musk and U.S. President Donald Trump were arguing online, Trump on Truth Social and Musk on X (formerly Twitter).
Even after this loss, Musk is still the richest person in the world, with about $388 billion, according to Forbes. He is far ahead of Mark Zuckerberg ($236 billion). Donald Trump, with a net worth of $5.4 billion, is ranked much lower at No. 689.
SpaceX May Shut Down Dragon Spacecraft Over Feud
As the fight between Musk and Trump continues, Musk said his company SpaceX will shut down its Dragon spacecraft, which is used to carry NASA astronauts and cargo to the International Space Station.
This came after Trump said he would cancel Musk’s government contracts to save money about $22 billion worth of deals are at risk.
Trump posted on Truth Social that stopping Musk’s contracts is an “easy” way to save “billions and billions of dollars.” Musk replied on X, saying he would begin decommissioning the spacecraft immediately.
NASA responded, saying it will continue to support the President’s space plans and work with other space companies.
Why Are Musk and Trump Fighting?
Musk and Trump used to get along well. But things changed about a week ago when Musk criticised Trump’s new budget bill, called the “Big Beautiful Bill.” This bill cuts taxes and removes government help (like subsidies) especially for electric cars.
Here’s what the bill does:
-
Cuts taxes by $3.7 trillion
-
Increases U.S. debt by $2.4 trillion
-
Raises the debt ceiling by $4 trillion
Musk didn’t like the bill. He said the tax breaks and higher defense spending would hurt the economy and hurt clean energy efforts, like Tesla and Dogecoin (DOGE). He joked that a bill can be “big” or “beautiful,” but not both.
Trump’s Comeback and Musk’s Final Shot
Trump claimed Musk only complained because the bill would cut electric vehicle funding, which would hurt Tesla’s profits.
Trump said:
“He only got upset when he found out we’re cutting the EV mandate… That’s billions and billions of dollars.”
Musk hit back, claiming he actually helped Trump win the last election, saying:
“Without me, Trump would have lost. Democrats would control the House, and the Republicans would be 51-49 in the Senate.”
Summary:
Elon Musk lost $27 billion after Tesla’s shares dropped. At the same time, he’s in a public argument with Trump over a new budget bill that cuts support for electric vehicles. Musk now says SpaceX will shut down a major spacecraft project because of threats to cancel government contracts. Despite this, he remains the richest person in the world.
