Elon Musk: “As a function of the great policies of President Trump and his administration, and as an act of faith in America, Tesla is going to DOUBLE vehicle output in the United States within the next two years…” pic.twitter.com/g8jY77yxtP
— Donald J. Trump (@realDonaldTrump) March 12, 2025
Elon Musk’s net worth has dropped by over $100 billion as Tesla faced its worst day on Wall Street in years. The billionaire’s net worth has decreased by more than $144 billion since December, according to a report. On Monday, March 10, Tesla saw its stock prices plummet by more than 15%, marking their lowest share price since October.
Number one, it's a great product, as good as it gets—and number two, because @ElonMusk has devoted his energy and his life to doing this and I think he has been treated very unfairly… pic.twitter.com/6qrfwrbT0f
— Donald J. Trump (@realDonaldTrump) March 12, 2025
This event was one of the biggest losses on Wall Street that day, largely attributed to ongoing trade tensions and Musk’s political entanglements. At the time of publication, Musk’s net worth was estimated at $319.6 billion by Forbes. Experts are evaluating the impact of Musk’s involvement in politics on Tesla.
In addition to serving as CEO of Tesla, Musk, 53, currently heads the White House’s Department of Government Efficiency. This role aims to modernize federal technology and software to enhance governmental efficiency and productivity.
🔥🇺🇸 Live from the White House, where U.S. President Donald Trump is purchasing a Tesla with Elon Musk in attendancehttps://t.co/BFOzxCFV6O
— Tesla Newswire (@TeslaNewswire) March 11, 2025
“Elon Musk’s deep entanglement in politics has significantly impacted Tesla’s reputation,” Abigail Wright, a consultant at the business advisory firm Chamber of Commerce, told reporters.
“Instead of focusing on Tesla’s innovation and growth, he has become a polarizing figure, alienating key international markets where political sentiment plays a major role in consumer perception and decisions.”
“This, combined with stirring political controversies in other countries, ongoing trade tensions, and his close ties to former President Trump, has contributed to Tesla’s stock decline,” Wright continued. “Had he channeled his energy into space exploration and technological advancements instead of politics, we might already be seeing breakthroughs that benefit humanity instead of stock declines and brand damage.”
Despite this historic downturn, Musk responded with one line: “It will be fine long-term.”
Amid the financial woes, Musk also faced challenges with his social media platform, X, which experienced widespread outages. Furthermore, his space travel company, SpaceX, is still recovering from two recent failed test launches.
Meanwhile, Dan Ives, a Wedbush analyst who has often supported Musk and his company, advised Musk to “step up.”
“Musk needs to step up as Tesla CEO at this critical juncture,” Ives said. He also noted that there has been “little to no sign of Musk at any Tesla factory or manufacturing facility in the last two months,” arguing that perception has become reality for Tesla shares. Former President Donald Trump also showed his support for Musk, vowing to buy a new Tesla as a countermeasure to boycotts against the company.
“I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump wrote on his social media platform. “Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”
Attorneys for Tesla and Musk did not immediately respond to requests for comment. In a rare display of vulnerability, Elon Musk appeared to be on the brink of tears during a recent interview where he discussed the many challenges Tesla faced over the years.
musk faces political and market strains
The interview, which has garnered significant attention, showcases Musk struggling to maintain his composure as he reflects on the tumultuous periods in the company’s history. “Many years since I saw Elon almost crying,” remarked one of his long-time associates.
Musk’s evident emotional strain highlights the intense pressure he experienced as he navigated Tesla through financial uncertainties, production nightmares, and public scrutiny. The video clip, which has gone viral, shows Musk choking up while recounting the sacrifices made and the relentless efforts that went into making Tesla a success. His candid admission of the company’s hurdles has struck a chord with many, underscoring the often unspoken challenges that come with innovating and leading in the technology sector.
Tesla’s journey has been marked by significant milestones and setbacks. From near-bankruptcy situations to groundbreaking achievements in electric vehicle production, Musk’s leadership has been a rollercoaster of highs and lows. Despite these hurdles, Tesla has emerged as a leader in the electric vehicle market, bolstered by Musk’s unwavering vision and determination.
This heartfelt interview adds a personal dimension to the public persona of Musk, offering a glimpse into the emotional toll that such a high-stakes endeavor has taken on him. Tesla’s sales are sinking for other reasons too. Tesla, the electric vehicle manufacturer led by Elon Musk, has been facing significant challenges recently.
The company has seen a substantial decline in sales and share price. On March 11th, former President Donald Trump announced that he would buy a Tesla vehicle. However, the day before this endorsement, Tesla experienced a massive 15% drop in its share price, largely due to a broader market sell-off instigated by Trump’s trade policies and his remarks about America’s economy entering a “period of transition.”
This endorsement is unlikely to reverse the slump Tesla is experiencing.
The company is grappling with several issues, and the uncertainty surrounding trade policies and economic transitions only adds to its woes. The fluctuating duties and trade tensions are significant concerns, and Tesla’s market performance reflects these broader economic uncertainties. Tesla’s challenges are compounded by other market dynamics, including increasing competition from both American and Chinese electric vehicle manufacturers.
Despite these hurdles, Tesla’s position in the market remains critical as the company navigates these complex challenges.
