Elon Musk’s Net Worth Takes a Hit as Trump Quarrel Escalates
In a dramatic turn of events, Elon Musk, the world’s richest man, saw his net worth plummet by $26.7 billion to $388 billion on Thursday, according to estimates from Forbes. This significant drop came as a result of a heated exchange between Musk and US President Donald Trump, which led to a sharp decline in the share price of Musk’s electric vehicle company, Tesla.
The spat between the two high-profile figures began when Musk claimed that Trump would not have secured a second term without his backing, prompting Trump to accuse Musk of having “Trump derangement syndrome”. This public feud had a profound impact on Tesla’s stock, which declined by 14%, or $47 per share, to $285 on Thursday. This represents a loss of over $150 billion in market capitalization, which is more than the total valuations of Ford, General Motors, and Rivian, the next three most valuable publicly traded American automakers, combined.
As reported by Forbes, the decline in Tesla’s stock was its worst day on Wall Street since March, placing it among the company’s 11 largest single-day losses since it went public in 2010. Wedbush analyst Dan Ives noted that “investors fear that this Musk/Trump battle will…change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump Administration”. This concern is not unfounded, as Tesla’s autonomous driving initiatives are highly regulated, and any changes to the regulatory environment could have a significant impact on the company’s future prospects.
The impact of the quarrel on Musk’s net worth was significant, with his wealth dropping below $400 billion for the first time in recent weeks. To put this into perspective, Musk lost the equivalent of five times Trump’s $5.5 billion net worth on Thursday. Furthermore, Tesla’s share price has declined by 33% since Trump’s January inauguration, at which Musk made a controversial appearance. In contrast, the S&P 500 benchmark has fallen by less than 1% during the same period.
According to Forbes, the current situation has led to concerns among investors about the potential implications for Tesla’s business. As Ives explained, the battle between Musk and Trump could lead to changes in the regulatory environment, which could negatively impact Tesla’s autonomous driving initiatives. As the company continues to navigate this challenging landscape, investors will be closely watching the developments in this situation.
In related news, Forbes has reported extensively on the Musk-Trump feud, including an article titled “Musk And Trump Alliance Implodes: ‘Without Me Trump Would Have Lost The Election’” by Sara Dorn, and another article titled “Tesla Stock Plunges 8% As Trump Suggests Musk Has ‘Trump Derangement Syndrome’” by Ty Roush. These articles provide further insight into the background and implications of the quarrel between Musk and Trump.
The ongoing saga highlights the complex and often unpredictable nature of the business world, where public feuds between high-profile figures can have significant consequences for companies and investors alike. As the situation continues to unfold, one thing is certain – Elon Musk’s net worth will remain under close scrutiny, and any further developments in the Musk-Trump feud will be closely watched by investors and analysts around the world.
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