Tesla’s Stock Plummets as X Faces Technical Failures
Tesla stock drop: As X faced major outages, Tesla’s stock (TSLA) fell over 15%, raising concerns about Elon Musk’s stretched commitments.
The downturn comes amid growing scrutiny over Musk’s dual role as a business leader and a political adviser to Donald Trump’s administration. His focus on the Department of Government Efficiency, where he’s pushing aggressive cost-cutting measures, has many wondering if he’s neglecting his companies.
Tesla Faces Protests, Violence, and Slumping Sales
Monday’s stock drop was Tesla’s biggest since 2020, and it follows a troubling trend.
- Germany’s Tesla sales fell 76% in February, sparking concerns about European EV demand.
- Tesla dealerships have faced violent protests in response to Musk’s political ties, including:
- Gunshots at an Oregon dealership
- Arson at Tesla charging stations in Boston
- Protests in Lower Manhattan
Musk claimed without evidence that Democratic donors were behind the protests, adding to the controversy.
X Outages and Cyberattack Allegations
On the same day, X suffered multiple outages, with over 41,000 reports of disruptions, according to Downdetector.
Musk blamed a cyberattack from Ukraine but provided no proof. Meanwhile, a hacking group called Dark Storm took credit, casting doubt on Musk’s claims.
This isn’t the first time X has faced technical failures under Musk’s leadership. A 2024 live conversation between Musk and Trump was also cut short due to alleged cyberattacks, though no evidence was ever presented.
SpaceX Setback Adds to the Chaos
Adding to Musk’s troubles, a SpaceX rocket exploded during launch last week, raising concerns about the company’s reliability. Musk’s response? A casual post on X: “Rockets are hard.”
Is Musk’s Attention Divided?
As Tesla’s stock price drops and X faces stability issues, questions about Musk’s leadership are growing. While he plays a key role in Trump’s administration, critics argue his businesses are paying the price for his political ambitions.
With Tesla’s stock already 50% lower than its December peak, investors are wondering: Can Musk afford to juggle both?
Source: The New York Times
