Elon Musk Is $27 Billion Poorer As Trump Quarrel Eats Into Net Worth

Key Concepts:

• Elon Musk's net worth decline
• Tesla stock price drop
• Feud between Elon Musk and Donald Trump
• Government subsidies and contracts
• Electric vehicle (EV) tax credits
• Federal debt and budget
• Nonpartisan Congressional Budget Office (CBO) estimate

Elon Musk's Net Worth and Tesla Stock Decline

On Thursday, Elon Musk experienced a significant decrease in his net worth, falling below $400 billion. According to Forbes's latest estimates, his net worth decreased by $26.7 billion, settling at $388 billion. This decline was largely attributed to a 17% drop in Tesla's stock price, which fell by $55 per share to $277. This occurred on a day that was otherwise relatively stable for the market.

Feud Between Musk and Trump

The primary catalyst for the stock decline was a public and strongly worded exchange of insults between Elon Musk and former President Donald Trump. Musk claimed that Trump would not have secured a second term without his backing, referencing his donation of over $250 million to help elect him last year. Trump responded by accusing Musk of having "Trump derangement syndrome."

Trump's Threat to Revoke Government Contracts

President Trump suggested he might revoke Elon Musk's government contracts due to their disagreement over Trump's signature policy bill. Trump posted on Truth Social, stating that "The easiest way to save money in our budget billions and billions of dollars is to terminate Elon's governmental subsidies and contracts i was always surprised that Biden didn't do it." He also insinuated during an Oval Office press conference that Musk opposes his bill because the electric vehicle incentive was removed. Trump also alleged that Musk "knew the inner workings of the bill."

Musk's Response and EV Tax Credits

Musk responded to Trump's accusations via Twitter. He didn't reject the accusation about the EV tax credits, but stated "It was very unfair that oil and gas subsidies were left in the bill." In a subsequent tweet, Musk claimed, "This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it."

Bill's Impact on Federal Debt

The bill in question is projected to add $2.4 trillion to the federal debt over the next decade, according to an estimate by the Nonpartisan Congressional Budget Office (CBO) released on Wednesday. The CBO estimates the bill would cost $4.2 trillion, mostly from tax cuts, and save $1.8 trillion.

Synthesis/Conclusion

The feud between Elon Musk and Donald Trump triggered a substantial drop in Tesla's stock price and Musk's net worth. The disagreement centered on government subsidies, EV tax credits, and a bill projected to significantly increase the federal debt. The public nature of the dispute and the potential implications for government contracts and subsidies added further complexity to the situation.