Elon Musk Faces Leadership Hurdles: Stocks, Cybersecurity, and Political Issues

Elon Musk watches his business empire face multiple crises as Tesla shares plummet, X platform crashes, and his controversial government role draws criticism.

Key Insights

Tesla stock has fallen 15.4% to $222.15, marking a 40% decline from recent highs, with market capitalization decreasing by nearly $800 billion since Musk’s government role began.
X (formerly Twitter) experienced major service outages that Musk attributed to a “massive cyberattack” from a “large, coordinated group and/or a country.”
Musk’s political support for Trump and other conservative figures has alienated Tesla’s traditionally liberal customer base, leading to protests and declining sales in key markets.
As head of the Department of Government Efficiency (DOGE), Musk aims to cut federal spending while facing skepticism about the feasibility of his trillion-dollar savings targets.

Tesla’s Stock Tumbles Amid Political Backlash

Tesla shares have fallen 15.4% to $222.15, their lowest point since October, amid uncertainty over Trump administration trade policies and investor concerns about Musk’s political activities. The company’s stock has plummeted by 40% from its peak of $479 after initially rising following Musk’s $270 million investment in Trump’s 2024 campaign. This decline represents a staggering loss in market capitalization, with nearly $800 billion wiped away since Musk began his government efficiency role.

The automaker faces not just stock declines but also troubling sales figures. 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. Sales have declined significantly in California, the company’s largest U.S. market, as well as in Europe, where deliveries dropped by 45%. Meanwhile, Chinese competition, particularly from BYD which has surpassed Tesla in EV sales, continues to intensify.

“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.”

X Platform Crashes Amid Alleged Cyberattack

Adding to Musk’s business troubles, his social media platform X suffered significant service outages. Musk quickly attributed these disruptions to a “massive cyberattack” carried out by what he described as a “large, coordinated group and/or a country.” The platform’s instability raised questions about whether the issues stemmed from actual malicious activity or underlying infrastructure weaknesses.

Musk has maintained a surprisingly lighthearted tone despite these challenges, quoting Monty Python with “Always look on the bright side of life!” His approach to these crises has been noted for its dismissiveness, even as Tesla has been forced to offer aggressive discounts and incentives in the U.S. market to stimulate lagging demand for its vehicles.

“massive cyberattack”

Government Role and Political Controversies

Musk’s role as head of the Department of Government Efficiency (DOGE) under the Trump administration has become a lightning rod for controversy. The initiative aims to dramatically reduce federal spending and employee numbers, with Musk claiming progress of “$4 billion in daily savings.” However, many of DOGE’s savings estimates have been questioned, with some claims being removed from their website after scrutiny.

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

The billionaire’s political activities have extended beyond American borders. He has supported far-right parties in Germany, criticized the British prime minister, and referred to Canada as “not a real country.” More recently, Musk sparked controversy by calling Senator Mark Kelly a “traitor” over a tweet about Ukraine, leading to a heated public exchange regarding U.S. foreign policy. These political stances appear to be alienating Tesla’s traditionally wealthy, environmentally-conscious, and liberal-leaning customer base.

Consumer Backlash and Business Impact

The #TeslaTakedown movement has gained traction as Tesla showrooms in the U.S. face protests, vandalism, and even negative bumper stickers applied to vehicles by those opposed to Musk’s political actions. Meanwhile, Musk’s other ventures have also encountered setbacks, with a SpaceX rocket exploding over Florida and the much-hyped Cybertruck failing to meet sales expectations after its launch.

Despite these challenges, Musk maintains that Tesla “will be fine long-term” and suggests that the DOGE team could grow to 200 members, ambitiously targeting $1 trillion in government savings. When asked how he’s managing his various businesses while serving in government, Musk candidly acknowledged he’s doing so “with great difficulty.” With federal government employment already decreasing by 10,000 jobs in February, observers are watching closely to see if Musk’s government efficiency claims will translate into measurable results.