Elon Musk has admitted that he is managing his companies “with great difficulty” while working alongside the Trump administration, as Tesla’s stock suffered a dramatic decline.
Speaking in an interview with Fox Business on Monday, Musk acknowledged the challenges of balancing his business responsibilities while serving in the Department of Government Efficiency, a federal body tasked with reducing government spending. His remarks came after Tesla Inc. recorded its steepest drop in over four years, with shares plunging to a five-month low.
Tesla loses $130 billion in market value
The electric vehicle (EV) giant’s stock continued its downward spiral in 2025, as mounting concerns over demand for Tesla’s cars sent shockwaves through Wall Street. Monday’s sell-off wiped out $130 billion in Tesla’s market valuation, bringing the stock down to its lowest level since October.
Tesla shares fell 15 per cent to $222.15, contributing to a 4 per cent drop in the Nasdaq index. The downturn was further exacerbated by fears of a recession, as tariffs imposed by the Trump administration on key US trading partners unsettled investors.
According to a Reuters report, the decline in Tesla’s market value on Monday alone surpassed the combined worth of Ford Motor and General Motors, which together total $86 billion.
Investors express concerns over Musk’s divided focus
Musk’s involvement in the federal government has raised alarms among investors, who fear he may be distracted from running Tesla, SpaceX, X, and xAI.
His deep ties to Dogecoin (DOGE) have also fuelled investor unease, with some linking his cryptocurrency ventures to Tesla’s recent struggles. Meanwhile, Tesla’s sales figures have continued to weaken, especially in Europe, where Musk’s association with Trump’s policies has drawn backlash.
On Sunday, protesters gathered outside a Tesla showroom in Lisbon, holding signs that read “Boycott Tesla”. Demonstrations have also taken place across the United States, with critics accusing Musk of prioritising government cost-cutting measures over the stability of his businesses.
Adding to the turbulence, Musk’s social media platform X (formerly Twitter) suffered a widespread outage on Monday—the same day Tesla’s shares plunged. Musk later claimed the disruption was caused by a cyberattack from Ukraine, though he did not provide any evidence to support his assertion.
Investor optimism persists despite stock slump
Despite Tesla’s current struggles, some investors remain confident in Musk’s long-term vision. Tesla is still valued significantly higher than traditional carmakers, as backers continue to bet on the company’s advancements in self-driving technology and humanoid robots.
However, Musk’s decision to support Trump’s federal workforce reductions has led to further protests, dubbed the “Tesla Takedown”. Many workers argue that job cuts in federal agencies—which Musk has helped oversee—have contributed to economic instability, further rattling consumer confidence in Tesla and other tech-driven firms.
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Musk’s net worth plummets
Tesla’s stock slump has also dealt a severe blow to Musk’s personal fortune. According to the Bloomberg Billionaires Index, his net worth has dropped by $132 billion since the start of 2025.
Musk, who was the world’s wealthiest individual, saw his fortune peak at $486 billion in December 2024. However, in just one day—Monday—his net worth declined by $29 billion, reflecting Tesla’s poor stock performance.
Other billionaires, including Jeff Bezos, Mark Zuckerberg, and Bernard Arnault, have also suffered financial setbacks amid market downturns and policy uncertainties.
What lies ahead for Tesla?
With Tesla facing weakening demand, growing political scrutiny, and a volatile stock market, analysts believe Musk will have to prioritise Tesla’s stability to restore investor confidence.
While Musk remains one of the most influential figures in tech and business, his dual role in the private sector and government is proving to be a major challenge—one that could shape the future of both Tesla and his leadership legacy.
