Elon Musk’s businesses are facing setbacks just as his political connections deepen. Will he be able to manage both?
Elon Musk spent the weekend with former President Donald Trump at Mar-a-Lago, even enjoying a ride on Air Force One. Their growing association has become more visible, but at the same time, Musk’s business empire is facing significant challenges.
His social media platform, X, suffered major downtime on Monday, Tesla’s stock price plunged by 15%, wiping out its post-Election Day gains, and SpaceX is dealing with the fallout of another failed rocket launch.
These setbacks have taken a toll on Musk’s wealth. On Monday alone, he lost an estimated $29 billion in net worth, according to the Bloomberg Billionaires Index.
While Musk has been taking on an increasing role in government, including leading the newly formed Department of Government Efficiency, his businesses continue to struggle. Supporters see his efforts as a push to eliminate government waste, while critics argue it’s an unelected power grab.
In a Monday interview with Fox News, Musk admitted that managing his businesses while also handling political duties is no easy task.
“I run my companies with great difficulty,” he said.
Musk has built his reputation on relentless work, often encouraging his employees to put in 16-hour days. Yet, despite his high-profile role in politics, the reality remains: businesses require strong leadership to thrive.
This moment is a critical test for Musk, according to Wedbush analyst Dan Ives.
“With Tesla’s stock tumbling, Musk must step up as CEO,” Ives wrote in a note to clients. “The key issue is balance—Musk needs to focus on Tesla’s leadership instead of devoting all his energy to the DOGE initiative within the Trump administration.”
Tesla Takes a Hit
Monday was a tough day for the stock market in general, but Tesla shares took a harder blow, falling 15%. This drop erased all the gains Tesla had made since Election Day.
In a move to show support, Trump made an unexpected announcement early Tuesday.
“Elon Musk is putting it all on the line for our country, and he’s doing an incredible job!” Trump wrote on Truth Social. “To show my confidence in him, I’ll be buying a brand-new Tesla tomorrow morning. He’s a great American!”
Musk responded on X, thanking Trump for the public endorsement.
Many Tesla investors initially believed that Musk’s close ties with Trump would be beneficial for the company. Some expected fewer regulations and an administration more favorable to Tesla’s business interests. However, the reality has been far different.
Tesla’s sales have been declining, particularly in Europe, where competition is heating up. Some analysts suggest Musk’s political involvement is alienating customers.
Additionally, Tesla has become a target of protests and vandalism. Earlier this month, a Tesla charging station in Boston was deliberately set on fire. In Oregon, someone opened fire on a Tesla dealership. Even individual Tesla owners have reported their vehicles being targeted.
Musk has responded by reposting supportive comments and expressing gratitude to those standing by Tesla. He has also accused left-wing activists and billionaire donor George Soros of orchestrating attacks against the company.
Trump weighed in on the controversy, claiming on Truth Social that radical leftists are illegally trying to “boycott Tesla” as part of an effort to harm Musk.
“Why should Elon be punished for using his incredible talents to help Make America Great Again???” Trump wrote.
Musk, on the other hand, remains optimistic. Responding to a post about Tesla’s stock struggles, he reassured followers, writing, “It will be fine in the long run.”
X Faces Widespread Outages
While Tesla’s troubles dominated headlines, Musk’s social media platform, X, also suffered a significant setback on Monday. Thousands of users reported outages, and website tracker DownDetector confirmed widespread disruptions.
Musk quickly responded, blaming the issue on a cyberattack.
“There is (still is) a massive cyberattack against X,” he posted on Monday. “We face attacks daily, but this one was well-coordinated and heavily resourced. Either a large group or a nation is behind it.”
One user suggested that the attack was part of an effort to silence Musk and suppress free speech on X. Musk agreed.
However, cybersecurity experts, including CyberSheath CEO Eric Noonan, warned against jumping to conclusions.
“In the immediate aftermath of an outage, it’s always best to be cautious before making definitive claims,” Noonan told CNN.
Musk purchased X, formerly known as Twitter, for $44 billion in 2022. But his investment has not paid off as expected. Last October, Fidelity estimated that Musk had lost about 80% of the platform’s value since the acquisition.
SpaceX’s Rocket Failures
As if Tesla and X weren’t enough, SpaceX is also facing its own set of challenges.
The first two launches of its massive Starship rocket ended in explosions, with the latest incident occurring last Thursday. Debris from the explosion was seen for miles, and even caused minor disruptions to air travel.
Earlier this year, a previous Starship explosion scattered debris across the Turks and Caicos Islands.
Musk, however, remains unfazed.
After the latest failure, he responded to an old photo of himself inspecting wreckage from a previous SpaceX rocket explosion.
“Today was just a small setback,” he wrote. “Progress is measured over time. The next rocket will be ready in four to six weeks.”
Despite Musk’s confidence, the Federal Aviation Administration is still investigating the incidents.
What’s Next for Musk and Tesla?
With so much happening at once, Musk finds himself at a crossroads. His businesses are struggling, his political involvement is controversial, and his personal fortune is shrinking.
Trump’s pledge to buy a Tesla may be symbolic, but it also highlights how Musk’s influence has expanded beyond just the tech industry. While some see him as a visionary working to reshape America, others believe his focus is too divided.
The coming months will be crucial. Can Musk balance his political ambitions with his business responsibilities? Will Tesla rebound from its latest struggles?
One thing is certain—Musk is not backing down, and neither is Trump.
