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He really hates his trans daughter!
She hates him more. When she changed her name, she changed her surname to her mother's and had it put into the court record that she disowns her father. She could have just broken contact, waited for him to die and hoped she was included in the will, but he was such an awful father that she said, "fuck you and your billions of dollars." Can you imagine how exceptionally bad a parent that would make him?
Not to play down how absolutely terrible I'm sure Musk is as a father, but her mum's also loaded. That would certainly make the decision easier.
But is she "barring significant changes in world financial systems, my descendants could purchase a small nation-state every generation and still likely never have to sell their labor or until the end of their genetic line" wealthy? Gotta remember that Billion with a B is an absurdly large number that is literally beyond human comprehension in anything but an abstract sense by a large margin.
I got more curious, so I did some searching, and I just can't. Turns out Musk has some absurd number of children with several different women. And I only found that out through some pop culture/celebrity worship/exploitation websites I'd rather not have in my search history. I couldn't even find the name or age of the child in question (probably for the best, I wouldn't want my children to go through this, either), though it seems of the three children he had with Grimes, the oldest just turned 4. That's a bit young to even know what disowning is.
Sure, her mom is loaded. But even ignoring the money, she wanted it known in a legal setting and on an official court transcript that she did not consider Elon Musk to be her father. That's quite the statement.