Elon Musk faces a multi-pronged attack against his businesses, as Tesla stock plummets to concerning lows amid his new government role. Critics question whether the tech billionaire’s foray into politics with his role in President Trump’s administration is hurting his business empire…because left-wing extremists want him to fail so badly.
At a glance:
• Tesla shares dropped 15.4% to $222.15, their lowest point since late October
• Musk’s $270 million investment in Trump’s campaign initially boosted Tesla stock before it fell by 40%
• Tesla faces declining sales globally, with a 45% drop in Europe and significant decline in China
• Musk’s X platform experienced outages he attributed to a “massive cyberattack”
• As Head of the Department of Government Efficiency (DOGE), Musk aims to cut federal spending while managing his business empire
Tesla’s Declining Stock and Sales
Tesla’s market value has plummeted by nearly $800 billion since Musk took on his government role with the Trump administration. The electric vehicle maker’s shares fell 15.4% to $222.15, marking their lowest point since late October amid a broader Wall Street sell-off due to uncertainty over Trump administration trade policies.
Musk invested $270 million in Trump’s campaign for the 2024 election, initially boosting Tesla’s stock to $479 per share before it fell by 40%. This decline coincides with Musk’s increasingly public political stance, which analysts suggest may be alienating Tesla’s traditionally liberal and environmentally-conscious customer base.
The company is facing declining sales in California, its largest U.S. market, along with a 45% drop in Europe and significant decline in China due to local competition.
X Platform Under Attack
Adding to Musk’s business challenges, his social media platform X experienced significant outages that he attributed to a “massive cyberattack.” Musk claimed the attack came from a “large, coordinated group and/or a country,” though questions remain about whether infrastructure failures may have played a role.
Despite the serious business challenges, Musk has remained outwardly optimistic, quoting Monty Python with “Always look on the bright side of life!” This lighthearted response comes as Tesla offers aggressive discounts and incentives in the US to boost declining demand.
The #TeslaTakedown movement has gained traction, with Tesla showrooms in the U.S. facing protests and vandalism. Many critics point to Musk’s political statements, including supporting far-right parties in Germany, criticizing the British prime minister, and referring to Canada as “not a real country.”
Government Efficiency Role
As Head of the Department of Government Efficiency, Musk aims to reduce federal spending and employee numbers. He has claimed significant progress with “$4 billion in daily savings” and predicts his DOGE team could grow to 200 members with a goal of $1 trillion in savings.
Musk acknowledged running his businesses “with great difficulty” while serving in the Trump administration. When asked about Tesla’s future amid the current challenges, Musk maintained optimism, stating simply: “It will be fine long-term.”
Federal government employment decreased by 10,000 jobs in February, though some of Musk’s savings estimates through DOGE have been questioned by analysts. Several claims about government savings were reportedly removed from the DOGE website after scrutiny over their accuracy.
