Elon Musk Admits Challenges in Balancing Tesla, DOGE, and CEO Roles as Stock Plummets

Elon Musk, the CEO of Tesla, SpaceX, X (formerly Twitter), and xAI, has acknowledged that managing his various businesses has become “very difficult.” His admission comes at a time when Tesla’s stock has suffered a massive decline, wiping out $130 billion in market value in a single day as Wall Street faced a broad selloff.

Musk, who has also been actively working with the Department of Government Efficiency (DOGE), has raised investor concerns over his divided attention and growing political ties.

Tesla Stock Takes a Major Hit Amid Market Turmoil

Tesla’s stock price plunged 15% to $222.15 on Monday, its lowest level since October. The sharp decline in Tesla’s valuation—more than the combined market capitalization of Ford and General Motors (GM)—came as the U.S. stock market experienced a widespread selloff.

• Tesla lost $130 billion in market value, a staggering drop in a single trading session.
• Ford and GM together have a market cap of about $86 billion, highlighting the severity of Tesla’s losses.
• Wall Street suffered a major downturn, affecting multiple sectors, with investors dumping shares amid economic uncertainty.

Musk Acknowledges Leadership Struggles

During an interview with Fox Business, Musk admitted that overseeing multiple businesses, while also working with the Trump administration’s Department of Government Efficiency, has been a tough balancing act.

Fox Business anchor Larry Kudlow asked:
“I mean, how are you running your other businesses?”

Musk sighed before responding:
“With great difficulty.”

The comment, reported by Reuters, has fueled investor anxieties about Musk’s ability to effectively lead Tesla while juggling multiple commitments.

Investor Concerns Over Musk’s Political Ties and Divided Focus

Musk’s close ties to former President Donald Trump’s administration and his involvement with government efficiency reforms have sparked growing concerns among Tesla investors.

• Musk’s role in the Department of Government Efficiency has become a key point of controversy, as the department focuses on cutting government spending.
• Investors worry that Musk’s political activities may be distracting him from Tesla’s operations, especially as competition in the electric vehicle (EV) industry heats up.
• Tesla’s reputation is facing backlash due to Musk’s growing political involvement, which some believe is damaging the company’s brand.

Public Backlash and Protests Against Tesla

Tesla’s troubles extend beyond the stock market. Public protests against Musk’s political influence have been growing, particularly in the U.S. and Europe.

• On Sunday, demonstrators gathered outside Tesla’s Lisbon showroom in Portugal, holding signs that read “Boycott Tesla” as part of the “Tesla Takedown” movement.
• The protest, reported by Reuters, is part of a larger campaign against Musk’s political stance and his influence on government policy.
• Similar demonstrations have been reported in the United States, Germany, and France, with activists criticizing Musk’s role in government spending cuts.

Tesla Sales Decline as Competition Heats Up

Tesla is also facing declining sales in Europe, where demand for its vehicles has dropped significantly.

• Tesla’s European car sales fell 45% in January compared to the same period last year.
• The overall EV market in Europe grew by 37% during the same period, showing that Tesla is losing ground to competitors.
• Rival automakers like Ford, GM, and Chinese EV companies are aggressively expanding their electric vehicle production, putting additional pressure on Tesla.

Musk’s political activities in Europe have also sparked concerns. His support for far-right parties appears to be affecting Tesla’s brand image, leading to a decline in demand for its vehicles in key European markets.

Tesla Faces Tough Competition from Chinese and Traditional Automakers

Despite political controversies, some analysts believe Tesla’s sales decline is not solely due to Musk’s political involvement.

• Chinese EV manufacturers like BYD and Nio are expanding rapidly, offering competitive pricing and innovative technology.
• Legacy automakers like Ford and GM are aggressively investing in EV production, closing the technology gap with Tesla.
• Tesla’s price cuts in key markets like China and the U.S. have helped boost short-term sales but have raised concerns over shrinking profit margins.

Market Uncertainty Continues for Tesla

Tesla’s stock remains under intense pressure, with investors closely monitoring Musk’s leadership decisions and the company’s ability to maintain its dominance in the EV market.

• Will Musk step back from his political commitments to focus on Tesla?
• Can Tesla recover from declining sales in Europe and fend off competition from Chinese automakers?
• Will Tesla’s stock rebound, or is more volatility ahead for investors?

For now, uncertainty looms over Tesla as investors, customers, and analysts question the future of the company under Musk’s divided leadership.