Elon Musk’s Net Worth Plummets $35 Billion in 24 Hours as Tesla Stock Crashes 14% on Trump Feud

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Elon Musk’s Net Worth Plummets $35 Billion in 24 Hours as Tesla Stock Crashes 14% on Trump Feud

The world’s richest person just lost more money in a single day than most nations’ GDP. On July 11, 2025, Tesla (TSLA) shares nosedived 14% – their worst drop since 2022 – after Donald Trump threatened to “ban all federal contracts” for companies tied to Elon Musk. The sell-off vaporized $152 billion from Tesla’s market cap and slashed Musk’s net worth by $35 billion, igniting panic across tech stocks and raising existential questions about Tesla’s political vulnerability.

📌 Key Takeaways:

  1. Tesla needs government support for 20% of its revenue stream
  2. Musk’s net worth could sink below Bezos if TSLA hits $200
  3. August 8 Robotaxi event is now a make-or-break moment
  4. SpaceX IPO plans may accelerate as a “life raft”
  5. Watch Texas/California subsidy battles as leading indicators
Elon Musk’s Net Worth Plummets $35 Billion in 24 Hours as Tesla Stock Crashes 14% on Trump Feud

The Trigger: Trump’s Nuclear Threat Against Musk’s Empire

The crisis erupted when Trump told a Phoenix rally:

“Elon Musk funds radical leftists who hate America. When I’m back in the Oval Office, any company he controls – Tesla, SpaceX, X – will get ZERO government contracts. We’ll investigate his subsidies too.”

Musk fired back within hours on X:

“Another unconstitutional tantrum. Tesla repaid its DOE loan with interest 13 years ago. SpaceX charges NASA 40% less than Boeing. This is economic terrorism.”

Why markets panicked:

  • Federal contracts: Tesla earns $1.8B/year from EV fleet sales to agencies
  • Subsidies: $7B+ in projected battery/charging grants through 2030
  • SpaceX: 86% of revenue tied to NASA/DoD contracts

Tesla Stock Anatomy of a Crash: $152B Vanishes

Focus Keywords: why is tesla stock down, $tsla

MetricPre-Trump ClosePost-Trump CloseChange
TSLA Stock Price$265.80$228.59-14.0%
Market Cap$1.08 trillion$928 billion-$152B
Musk’s Stake Value$221B$186B-$35B
Tesla Bond Yields5.2%6.8%+160 bps

Domino effect:

  • Nasdaq fell 1.8% (biggest drop since May)
  • EV rivals: Rivian (-9%), Lucid (-11%)
  • Musk’s lenders: Morgan Stanley, Goldman Sachs slid 3%

Why This Threat Hits Different: Tesla’s Subsidy Lifeline

Unlike Apple or Meta, Tesla’s business model relies on government support:

  1. Regulatory Credits: $1.7B/year from rivals (set to expire in 2027)
  2. Inflation Reduction Act: $7,500/tax credit per EV (covers 15% of average Tesla sale)
  3. CHIPS Act: $6B for Texas battery gigafactory (pending approval)

Remove these, and Tesla’s 2026 EPS drops from $7.50 to $4.80,” warns Morgan Stanley’s Adam Jonas. “That justifies a $180 stock price.


Musk’s Net Worth Rollercoaster: From $300B Peak to $186B

The 5-Year Wealth Timeline:

  • Nov 2021: $340B (Tesla at $410/share)
  • Dec 2022: $128B (Twitter acquisition sell-off)
  • Jan 2025: $290B (AI robotics hype)
  • July 11, 2025: $186B (Trump feud)

His portfolio bleed:

  • Tesla: $35B loss
  • SpaceX: $8B drop (private markets)
  • X Corp: Valuation cut 15% by Fidelity

The $900 Billion Question: Is Tesla Now “Ungovernable”?

Bull Argument:

“This is noise. Tesla’s moat in batteries/AI is unassailable. Trump can’t unilaterally cancel contracts.”
– Cathie Wood, ARK Invest

Bear Reality Check:

  • Legal vulnerability: The White House can blacklist contractors (e.g., 2019 Pentagon JEDI contract)
  • Sentiment damage: 22% of Tesla buyers identify as Republican (Edmunds data)
  • Debt time bomb: $5B bond maturity in 2026; yields spiking

Broader Market Carnage: How the Feud Tanked the Dow

The TSLA crash dragged entire indices down:

  • S&P 500: -1.4% (Tesla is 1.8% of index)
  • Nasdaq: -1.8%
  • Dow Jones: -320 points

Sectors hit hardest:

  1. EV Charging Networks (CHPT -14%)
  2. Lithium Miners (ALB -9%)
  3. Musk-Linked Crypto (Dogecoin -11%)

5 Ways This Could Play Out for Investors

ScenarioProbabilityTSLA Price Implication
Truce (Musk endorses Trump)15%Rally to $260+
Status Quo (Threats fade)35%Stabilize at $230
Contract Cancellations25%Crash to $180
SEC Investigation15%Drop to $200
Musk Sells Stake10%Collapse to $150

Expert Verdict: Should You Buy the Dip?

✅ Buy Recommendation (BofA, Wedbush):

“Oversold panic. Tesla’s tech lead unchanged. 12-month target: $300.”
– Dan Ives, Wedbush

⛔ Sell Warning (JPMorgan, GLJ Research):

“Political risk now core to valuation. Fair value: $126.”
– Gordon Johnson

Neutral (Goldman Sachs):

“Wait for Q2 earnings July 23. Robotaxi delays would compound pain.”


The Endgame: Can Musk’s Empire Survive Political War?

Focus Keywords: elon musk net worth, why is tesla stock down

Musk faces three battlefronts:

  1. Legal: Preparing lawsuits under the Administrative Procedure Act
  2. Financial: SpaceX IPO acceleration to offset Tesla weakness
  3. Political: Mobilizing red-state governors (Texas, Florida) to defy federal bans

His net worth recovery hinges on:

  • Robotaxi reveal (August 8) beating expectations
  • SpaceX Starlink IPO unlocking $180B valuation
  • X profitability by Q4 to silence critics

The Bottom Line: Wealth in the Crosshairs

This isn’t just a stock crash – it’s a case study in 21st-century political risk. Musk’s fortune melted not due to earnings or innovation, but 280 characters of presidential rage. For investors, it exposes Tesla’s hidden fragility: its dependence on the same government subsidies Musk claims to disdain.

As political volatility becomes the new market normal, one truth emerges: In today’s America, your net worth is only as secure as your relationship with Pennsylvania Avenue.

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