World’s richest man Elon Musk saw his net worth plunge by US$12 billion as Tesla shares tumbled following U.S. President Donald Trump’s threat to withdraw billions in government subsidies from the billionaire’s companies.
The electric vehicle maker’s stock dropped over 6% on Tuesday to a three-week low of under $300 after Musk publicly criticized Trump’s signature spending bill a day earlier, reigniting a feud that first started in early May, Forbes reported.
The bill would slash subsidies for EV purchases, directly impacting Tesla, which has historically received billions in federal tax credits and incentives tied to clean energy and transportation, according to Reuters.
Trump quickly fired back at Musk’s criticism, saying he could use the Department of Government Efficiency, the cost-cutting effort that Musk spearheaded, against the leader of Tesla and SpaceX, as reported by Bloomberg.
Speaking to reporters on Tuesday, he said DOGE might review federal spending on EVs, rocket launches, and satellites.
He then escalated the feud on Truth Social, claiming Musk "may get more subsidy than any human being in history," and suggested that without government aid, Musk would have to "close up shop and head back home to South Africa."
Asked whether he would try to deport Musk, who was originally from South Africa but is now a U.S. citizen, Trump responded that he would "have to take a look."
Musk, in a post on X, denied that his criticism of the bill was solely about subsidies for his companies and said it was "tempting to escalate this," but that he would refrain for now.
The public spat has already taken a huge toll on Musk’s fortune. When it first erupted, he saw one of his biggest one-day drops in wealth, losing $34 billion. Tesla shares have fallen 13% from late May before the war of words began.
