Musk Running Businesses “With Great Difficulty” as Tesla Shares Plummet Amid DOGE Role

ByAva Sinclair

Elon Musk acknowledged Monday that he is running his businesses “with great difficulty” as Tesla shares experienced their worst single-day drop in five years, plummeting over 15.4% and extending a weeks-long decline that has erased nearly $800 billion in market value. The admission came during an interview with Fox Business while Musk continues his role leading the Department of Government Efficiency (DOGE) in the Trump administration.

“With great difficulty,” Musk chuckled when host Larry Kudlow asked how he was managing his various companies while serving in government, according to CNBC. After a sigh, he quickly pivoted: “I’m just here trying to make government more efficient, eliminate waste and fraud, and so far we’re making good progress, actually.”

Tesla’s stock has fallen every week since Musk joined the Trump administration to lead DOGE, which is engaged in a broad and controversial effort to reduce federal government spending and employee headcount. The electric vehicle manufacturer has lost more than 50% of its market capitalization since its December peak of around $479 per share.

Photo Source: Philipus/DepositPhotos

Presidential Support May Backfire

In an apparent effort to stem Tesla’s stock losses, President Donald Trump came to Musk’s defense on Tuesday, lining up five Tesla vehicles in the White House driveway and calling Musk a “patriot” during a press conference. Trump even announced he had purchased a red Model S, which retails for $80,000, exclaiming “Wow. That’s beautiful” as he sat in the driver’s seat.

However, financial analysts warn that the presidential endorsement could ultimately harm Tesla. “Tesla is becoming a political symbol of Trump and DOGE, and that is a bad thing for the brand,” said Wedbush Securities financial analyst Dan Ives, according to The Associated Press. “You think it’s helping, but it’s actually hurting.”

Trump had earlier posted on Truth Social that Musk was “putting it on the line” to help the country and claimed that “Radical Left Lunatics” were attempting to “illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s ‘baby.'” The stock did close up nearly 4% on Tuesday following these comments, but remained far below its December highs.

Multiple Business Challenges

Tesla’s troubles extend beyond stock market performance. The company faces increasing competition from rival electric vehicles, particularly from China, and has seen sales decline globally. Additionally, Tesla showrooms in the United States have been targeted by protesters, and vehicles have been vandalized on the street—with some Tesla owners placing bumper stickers on their cars with messages like, “I bought it before Elon went nuts.”

Beyond Tesla, Musk’s other ventures are experiencing difficulties. His X social media platform suffered several outages on Monday, which Musk claimed without evidence was due to “a massive cyberattack” from internet protocol addresses “originating in the Ukraine area.” Technology experts have noted that Musk significantly reduced X’s workforce, potentially increasing the platform’s vulnerability to technical issues.

Last week, a rocket launched by Musk’s SpaceX exploded and broke apart over Florida, about two months after another of the company’s rockets failed. Meanwhile, Musk also oversees the neurotechnology company Neuralink, adding to his already stretched responsibilities.

DOGE Progress and Controversies

During Monday’s interview, Musk claimed that DOGE has made “good progress” and stated, “Our savings at this point exceed $4 billion a day. So it’s very significant.” He indicated there are currently more than 100 people on DOGE’s team positioned in nearly every government agency, a number that might increase to 200.

“Unless we’re stopped, we will get to $1 trillion of savings,” Musk predicted. However, his estimates of savings have been challenged by economists, and DOGE has deleted some of the largest purported savings that it had previously listed on its website.

According to data released Friday by the Bureau of Labor Statistics, federal government employment fell by 10,000 jobs in February following DOGE’s efforts. Musk also said during the Fox Business interview that he expected to remain in the Trump administration for another year.

Photo Source: ChinaImages/DepositPhotos

Political Controversy

Musk’s political activities have also drawn attention. On Monday, he called Democratic Arizona Senator Mark Kelly a “traitor” after the senator posted about a visit he made to Ukraine over the weekend. “Everyone wants this war to end, but any agreement has to protect Ukraine’s security and can’t be a giveaway to Putin,” Kelly had written, referring to Russian leader Vladimir Putin.

Kelly, a former U.S. Navy pilot and NASA astronaut, fired back: “Traitor? Elon, if you don’t understand that defending freedom is a basic tenet of what makes America great and keeps us safe, maybe you should leave it to those of us who do.” The exchange comes as the Trump administration pressures Ukraine to reach a ceasefire with Russia under terms that include significant concessions.

Financial Implications

The steep decline in Tesla’s stock price could harm the company in multiple ways. The company offers many workers the chance to buy shares at a discounted price as an incentive, but with the stock trading well below last year’s levels, this benefit has diminished in value or become worthless for many employees.

Additionally, the price drop could limit Tesla’s ability to raise capital by selling newly created shares to investors. In 2020, the company sold $12 billion worth of shares to fund research and factory expansion, but a falling stock price would significantly reduce proceeds from any similar future offerings.

Musk, for his part, remains publicly optimistic about Tesla’s prospects despite the challenges. “It will be fine long-term,” he wrote in a tweet responding to a post about Tesla’s historic stock drops. Whether investors and consumers share his confidence remains to be seen as his political profile continues to rise.

Ava Sinclair

Ava is a financial analyst-turned-writer who translates complex economic trends into digestible insights. Whether it's Wall Street movements, market shifts, or personal finance strategies, Ava makes numbers make sense for everyone.

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