Tesla’s market valuation took a significant hit this week, with shares tumbling nearly 15% in one day. This marks the steepest decline since the pandemic years, amplifying concerns about Elon Musk’s multitasking across ventures—especially amidst growing political commitments and operational failures at both X and SpaceX.
Massive X Platform Outage Sparks Worries
The timing of Tesla’s market drop aligned with widespread service outages on X (formerly Twitter), which left thousands of users unable to access the platform. Downdetector recorded over 41,000 incident reports. Musk pointed fingers at a cyberattack from Ukraine but failed to produce conclusive proof. In contrast, a hacking outfit named Dark Storm claimed they were behind the breach.
These recurring tech issues have reignited debates about the platform’s resilience since Musk took the helm.
Political Engagement Adds to Investor Unease
Musk’s increasing political involvement—most recently as a key advisor in the Trump-aligned Department of Government Efficiency—has become a major talking point. The billionaire is advocating for widespread spending cuts in government, but critics say this comes at the expense of his core businesses.
European EV Market Shows Weakness for Tesla
In Europe, Tesla’s grip appears to be loosening. The German market, once a key growth area, saw a dramatic 76% drop in sales in February. This data signals possible fatigue in EV demand or shifts in regional competition.
Meanwhile, political tensions are spilling over into real-world consequences. Recent attacks on Tesla’s infrastructure and facilities include:
- A shooting incident at a dealership in Oregon
- Arson targeting charging points in Boston
- Street demonstrations in parts of New York City
Elon Musk has publicly claimed that left-leaning political donors are orchestrating these protests, but has not presented verifiable evidence.
SpaceX Incident Raises Reliability Questions
To make matters worse, a SpaceX rocket exploded shortly after takeoff last week, marking another high-profile failure. Musk’s comment on the matter—“Rockets are hard”—posted to X, was perceived by some as flippant, adding to frustration among stakeholders seeking more accountability.
Leadership Under the Microscope
With Tesla’s stock now trading at less than half its December 2024 peak, investor confidence is clearly shaken. As Musk splits his attention between political advising, social media management, and rocket science, critics argue that operational oversight is slipping through the cracks.
For investors, the big question is:
Is Elon Musk’s widespread involvement across industries turning into a liability rather than an asset?
Conclusion
As challenges continue to mount across Musk’s various ventures, the coming months will be critical. Whether he can restore focus—or whether distraction will further erode confidence—remains to be seen.
