The Downward Spiral of Tesla: Is Elon Musk Paying Attention?

One of the world’s richest entrepreneurs, Elon Musk, paved the way for incredible advancements in electric vehicles and other industries. Additionally, he has partnered with U.S. President Donald J. Trump, which has contributed to his growing wealth. So why is Tesla stock dropping so much?

In the wake of the recent X (formerly Twitter) outages and the SpaceX rocket explosion in Florida, people are growing concerned about how much attention Musk is paying to his companies. In response to the X outages, he claimed that the cyberattack must have originated from Ukraine without providing any evidence. In response to the explosion of the SpaceX rocket, he called it a “minor setback” and said on X that rockets were hard. These situations and responses have raised concerns, causing citizens to be reluctant to buy Musk’s products.

During the week of March 10, 2025, Tesla stock hit an all-time low, losing around 50% of its value. A combination of a negligent CEO, rising competition, and lower shipments have led to this drop. Many countries, including China and Australia, are unwilling to buy Musk’s products because of his new political stance. Additionally, almost all of the Tesla Cybertrucks are being recalled due to faulty exterior panels.

Tesla took a substantial hit in its finances after the Cybertruck incident, as well as a hit in customer confidence. Those who were once supporters of Tesla have turned to its competitors for products. These competitors, such as BYD and Rivian, are starting to gain momentum in a variety  of markets. Furthermore, Elon Musk’s new political stance has turned many supporters into enemies. Many electric vehicles have been vandalized, and many potential buyers are uneasy about his involvement in politics. Especially in China, Tesla sales have gone down because of these affiliations.

Elon Musk can make as many excuses as he wants, but ultimately, the fault lies with him. Despite these recent difficulties, he has expressed confidence that his stock will recover in the future. Having lost a substantial amount of customers already, Musk will have to work extremely hard to rebuild trust. His actions will be closely monitored, especially given his recent involvement with politics. Tesla and Elon Musk’s journey has been a complex one. There will be many challenges ahead, and it is unclear if they will emerge stronger or will be pulled under by the pressure.