Elon Musk loses $12 billion in a single day amid renewed tensions with Donald Trump; Tesla analyst says ‘This BFF situation has now turned into….
lost $12 billion in a single day following a clash with US President
Donald Trump
. According to
Forbes
,
Tesla shares
fell more than 5% on Tuesday - July 1 as Trump suggested that government subsidies to Musk's companies, including both
Tesla
and
SpaceX
, should be reviewed and possibly eliminated by the
DOGE
– the federal cost-cutting body. As per the report, Musk's $12 billion loss is the largest single-day drop among all billionaires. Despite the decline, Musk remains the world's richest person with an estimated net worth of $395 billion—still $130 billion ahead of Oracle founder
Larry Ellison
.
Wedbush analyst
Dan Ives
commented on the growing feud, writing in a note to clients: 'This BFF situation has now turned into a soap opera that remains an overhang on Tesla's stock.'
Feud with Trump sparks Tesla shares decline
Tesla stock's sharp fall was sparked by Trump's latest post on Truth Social, where he claimed Musk's companies have received 'more subsidies than any human being in history' and called for the Department of Government Efficiency (DOGE) to investigate the funding. Trump further said that Musk might have to 'head back home to South Africa' if the subsidies were removed.
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Undo
The feud between Trump and Musk reignited after the tech billionaire criticized Trump's new federal spending bill. So much so that he threatened to create a new political group, calling it the 'America Party,' if the bill is passed by the Senate.
Trump responded by questioning Musk's loyalty and criticizing electric vehicle mandates, which he called 'ridiculous.' Elon Musk knew, long before he so strongly Endorsed [sic] me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one,' the president wrote on Truth Social.
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