Elon Musk, the prominent tech magnate, experienced a significant decline in his net worth, losing approximately $34 billion on a single day, Thursday, as Tesla's stock plummeted by 14%.

This financial downturn coincided with a growing public dispute between Musk and former President Donald Trump, which has raised alarm among investors.

The loss followed Musk’s unexpected withdrawal from his role as a 'special government employee' after he criticized what Trump termed a 'beautiful and tremendous bill' as a 'stupid project.' Initially, tensions between the two appeared minimal, but their exchanges on social media escalated into a broader crisis, leading to a rapid loss of market confidence.

So far this year, Tesla's shares have dropped by 29.3%, with the company’s market capitalization now at approximately $917 billion, marking a decline of about $400 billion — the largest decrease among major corporations globally.

Trump has characterized Musk as 'a man who has lost his mind' and claimed that he requested Musk to leave his administration, even hinting at the possibility of withdrawing federal contracts from Musk's companies.

Conversely, Musk has stated that his political support was crucial in Trump’s election victory, accusing Trump of being connected to the 'Epstein files,' in reference to the billionaire involved in numerous sexual exploitation scandals.

Despite the drop in Tesla's stock by 33% since Trump's inauguration, Musk retains the title of the world's richest person according to Bloomberg's index.

This loss stands as the second-largest recorded personal financial loss in Musk's history, following a similar downturn in November 2021.

Despite the severe financial blow, Musk continues to exert influence in the technology sector through his other ventures, including SpaceX, Neuralink, and the artificial intelligence initiative xAI, which maintain substantial market valuations and continue to attract investor interest.

With reconciliation prospects diminishing, as confirmed by a senior White House official, the future remains uncertain.

Trump's threats to reassess vital government contracts for Tesla and his ongoing criticism of the company’s environmental vision raise significant concerns.

Trump has downplayed the rift in various televised interviews, stating to Fox News, 'Elon has completely lost his mind...

I'm not very concerned about it; this poor guy has a problem.'

As the storm of their public exchange calms temporarily, markets are closely monitoring Musk's next moves amid questions regarding his relationship with the U.S. government and Tesla's ability to regain investor confidence amidst unprecedented escalating tensions.

As the public dispute continues to unfold between these two prominent figures in the U.S., uncertainties loom regarding the future trajectory of Musk and his companies, especially following Trump's overt criticisms of Tesla's environmental mission and threats to revoke its critical government contracts.