According to a Reuters report by Noel Randewich and Abhirup Roy, Elon Musk expressed challenges in managing his companies while collaborating with the Trump administration during an interview with Fox Business on Monday. Following a significant downturn in the stock market, Tesla lost $130 billion in value, causing its shares to plummet to their lowest point since October. This decline, with Tesla shares dropping 15% to $222.15, heavily impacted the Nasdaq, which fell 4% amid concerns over potential recessionary impacts from the Trump administration’s tariffs on key U.S. trade partners. Monday’s financial setback surpassed the combined market value of Ford Motor and General Motors by $86 billion. The recent losses wiped out gains from Tesla’s rally post the U.S. presidential election in November, which saw its stock nearly double on hopes of favorable outcomes from Musk’s rapport with Trump.
Investors have raised worries about Musk’s focus being diverted by his role in leading the Department of Government Efficiency in cutting government spending, affecting his ability to effectively oversee his various businesses, such as Tesla, SpaceX, X, and xAI. In response to Fox Business’s Larry Kudlow’s inquiry about these pressures, Musk acknowledged the challenges he faces in managing his other ventures during the interview.
Despite Tesla’s stocks trading at significantly higher multiples than its automotive counterparts, Musk’s supporters remain optimistic about his ambitious promises in autonomous vehicles and robotics. However, recent protests against Tesla, dubbed “Tesla Takedown,” have emerged in the U.S. due to Musk’s involvement in governmental workforce reductions at Trump’s behest. Additionally, Tesla’s sales in Europe have declined, attributed in part to Musk’s support for right-wing parties in the region. European car sales data from January indicated a 45% drop in Tesla vehicle sales compared to the previous year, while overall electric vehicle sales surged by over 37%.
Analysts suggest that while Musk’s political engagements may be influencing Tesla’s sales performance, other factors like intensified competition from Chinese brands and established automakers, including GM, are also affecting the global electric vehicle market dynamics.
