Elon Musk’s Latest Leadership Hurdles: Tesla, Government, and Geopolitics Unveiled

Elon Musk’s business empire faces unprecedented challenges as Tesla stock plummets, his social media platform crashes, and his new government role draws scrutiny amid growing political controversies.

Quick Takes

Tesla shares have fallen 15.4% to $222.15, marking a 40% decline from recent highs amid concerns over declining sales and market share.
Musk’s X social media platform experienced a major outage attributed to a “massive cyberattack,” adding to his business woes.
As head of Trump’s Department of Government Efficiency (DOGE), Musk aims to cut $1 trillion in government spending while facing questions about his claims.
Tesla’s traditional customer base of environmentally-conscious consumers appears to be rejecting the company due to Musk’s political positions.
Musk’s controversial comments about global leaders and a public spat with Senator Mark Kelly over Ukraine policy have further complicated his leadership challenges.

Tesla’s Steep Decline: Political Backlash and Market Challenges

Tesla’s stock has tumbled to its lowest level since October, falling 15.4% to $222.15 amid a broader market selloff sparked by uncertainty over Trump administration trade policies. The decline represents a 40% drop from its recent peak of $479 per share, wiping out nearly $800 billion in market value since Musk took on his government efficiency role. Industry analysts point to a combination of factors behind Tesla’s troubles, including Musk’s increasingly divisive political stance which appears to be alienating the company’s traditional customer base of wealthy, environmentally-conscious liberals.

Sales figures reveal a troubling trend for Tesla across multiple markets. UBS Global Research predicts a 5% drop in Tesla deliveries in the U.S. for both the first quarter and full year compared to 2024. The company faces even steeper declines in Europe, where deliveries have fallen by 45%, and in China, where local competition from manufacturers like BYD has intensified. Tesla has responded by offering aggressive discounts and incentives in the U.S. market to boost lagging demand, while the much-hyped Cybertruck launch has failed to meet expectations.

X Platform Outage and Operational Challenges

Adding to Musk’s business troubles, his X social media platform experienced a significant outage that he attributed to a “massive cyberattack.” Musk claimed the disruption was caused by a “large, coordinated group and/or a country,” though questions remain about whether infrastructure failures might have been responsible. The timing couldn’t be worse for Musk, coming amid his other business challenges and increasing scrutiny of his government role. The platform’s instability raises concerns about Musk’s ability to effectively manage his diverse business interests while taking on additional responsibilities.

“Massive cyberattack” – Elon Musk

Musk’s response to these mounting crises has been notably casual, quoting Monty Python with “Always look on the bright side of life!” and appearing unfazed by the financial impact. When questioned about managing his businesses while serving in government, Musk acknowledged he was running his companies “with great difficulty” but insisted that “it will be fine long-term.” Meanwhile, other Musk ventures face their own challenges, including a SpaceX rocket explosion over Florida that has raised questions about operational execution across his companies.

Government Efficiency Role and Political Controversies

Musk’s role as head of the Department of Government Efficiency (DOGE) in the Trump administration has become another focal point of controversy. The initiative aims to dramatically reduce federal spending and employee numbers, with Musk claiming the team could grow to 200 members while targeting $1 trillion in savings. However, economic experts have questioned these ambitious savings estimates, and some claims have been removed from the DOGE website after scrutiny. Federal government employment did decrease by 10,000 jobs in February, though the connection to Musk’s efforts remains unclear.

“DOGE chief Elon Musk said that he is running his businesses ‘with great difficulty,'” – Elon Musk

Musk’s political positions have sparked backlash beyond Tesla’s customer base. His support for far-right parties in Germany, criticism of the British prime minister, and disparaging comments about Canada have drawn international attention. A particularly heated exchange erupted when Musk called Senator Mark Kelly a “traitor” over a tweet about Ukraine, leading to a public argument regarding U.S. foreign policy. These controversies, combined with the $270 million he invested in Trump’s 2024 campaign, have contributed to growing protests, vandalism at Tesla showrooms, and the rise of the #TeslaTakedown movement among former supporters.

“Our UBS Evidence Lab data shows low delivery times for the Model 3 and Model Y (generally within two weeks) in key markets which we believe is indicative of softer demand.” – UBS Global Research