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Elon Musk had a high-profile weekend, hanging out with former President Donald Trump at Mar-a-Lago and even hitching a ride on Air Force One. But while his political presence is growing, his companies are going through a rough patch.
A Bad Week for Musk’s Businesses
On Monday, three of Musk’s biggest ventures hit major roadblocks. His social media platform X crashed for much of the day, Tesla’s stock price dropped by 15%, and SpaceX dealt with the aftermath of another failed rocket launch. As a result, Musk’s fortune took a huge hit—he lost a staggering $29 billion in a single day, according to Bloomberg.
Musk has taken on a new role in politics, leading the newly created Department of Government Efficiency. Supporters say he’s cracking down on government waste, but critics argue he’s overstepping. In an interview with Fox News, Musk admitted that balancing his companies with his political responsibilities has been “extremely difficult.”
Tesla’s Stock Plummets
While the overall stock market struggled on Monday, Tesla suffered a particularly harsh drop. The 15% decline wiped out all of the company’s post-Election Day gains.
Analyst Dan Ives from Wedbush called this a “moment of truth” for Musk, saying he needs to refocus on running Tesla. Ives noted that Musk has been distracted, especially with his push for Dogecoin as part of his work in the Trump administration.
Trump, however, is standing by him. On Tuesday morning, he announced that he would buy a Tesla to show support. “Elon Musk is putting it on the line to help our nation, and he is doing a FANTASTIC JOB!” Trump posted on Truth Social. Musk responded with a simple “thank you” on X.
At the same time, Tesla is struggling with sales, especially in Europe, where competition is heating up. Musk’s political views may also be affecting the company’s image. Protesters have targeted Tesla facilities, including setting fire to a charging station in Boston and shooting at a dealership in Oregon.
Musk has blamed liberal activists, including billionaire George Soros, while Trump claimed there’s an organized effort to hurt Musk’s businesses.
X Suffers Major Outage
On Monday, X went down, with tens of thousands of users reporting issues. Musk blamed a cyberattack, suggesting that a well-funded group—or even a foreign government—was responsible. He later agreed with a user who claimed that “they want to silence you and this platform.”
Cybersecurity experts, however, say it’s too soon to determine what caused the outage. X, formerly Twitter, has struggled financially since Musk bought it for $44 billion in 2022. Fidelity estimated last year that the company has lost 80% of its value under his leadership.
SpaceX Rockets Keep Exploding
SpaceX has also been dealing with setbacks. Its massive Starship rocket has exploded during both of its first two test launches, with the latest failure happening last Thursday. The blast left debris scattered across the area and even disrupted some flights. The Federal Aviation Administration is still investigating the cause.
Musk isn’t too worried, though. He shrugged off the failures, saying, “Today was a minor setback. Progress is measured by time. The next ship will be ready in 4 to 6 weeks.”
Can Musk Balance Politics and Business?
As Musk becomes more involved in politics, the big question is whether he can effectively run his businesses at the same time. He insists Tesla will be fine in the long run, but investors are growing nervous. One thing is clear: Political connections alone won’t keep a company running—strong leadership is still essential.
