The sharp decline came as tensions escalated between Musk and President Donald Trump, with investors also worried about potential changes to electric vehicle tax credits.
Despite the loss, Elon Musk remains the world’s richest person with an estimated net worth of $335 billion, according to the Bloomberg Billionaires Index.
He’s still ahead of Meta’s Mark Zuckerberg, who holds the second spot with $241 billion.
Tesla shares plunged 14.26% to close at $284.70 apiece on Thursday, marking the company’s worst single-day drop in recent memory.
The sell-off dragged down the broader markets as well, with the Nasdaq Composite falling 162 points (0.83%) to close at 19,298.45. The Dow Jones fell 0.25%, and the S\&P 500 dropped 0.53%.
The financial blow Musk took may be even deeper than reported, as the drop doesn’t include losses from his privately held companies.
SpaceX, for example, was last valued at $350 billion in a private share sale last December, adding around $50 billion to Musk’s wealth at the time.
That valuation was partly fueled by expectations of government support, which now seems uncertain given Musk’s falling out with Trump.
His other businesses, including AI venture xAI and social platform X, could also be affected, especially as Trump’s own business interests are tied to the social media firm Trump Media & Technology Group.
The fallout began when Musk publicly criticized Trump’s flagship spending and tax bill, calling it wasteful.
Trump fired back by threatening to cut off Musk’s federal contracts, a move that could significantly hit revenue for both Tesla and SpaceX. Investors took notice, prompting the massive stock sell-off.
Musk responded defiantly, tweeting, “Go ahead, make my day,” and even suggesting Trump’s name appears in documents related to the late financier Jeffrey Epstein.
He also announced plans to shut down SpaceX’s Dragon spacecraft program — the only U.S. vehicle currently transporting astronauts to the ISS, though he backtracked a few hours later.
While Musk has weathered financial setbacks before, this situation is more serious, as it combines political pressure, investor nerves, and the possible loss of key government contracts — all at once.
ALSO READ: Trump And Elon Musk Clash Heats Up With Threats Of Cutting Contracts, Backing Impeachment
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