Billionaire entrepreneur Elon Musk suffered significant financial blows on Monday as Tesla’s stock value plunged and his social media platform, X (formerly Twitter), experienced a major outage. The electric vehicle giant’s stock price dropped to a level lower than before Donald Trump’s election victory in November, marking a dramatic shift for the company.
Tesla’s stock has declined by more than 51% from its all-time high recorded in December. Investors had initially anticipated that Musk’s close ties with Trump would lead to regulatory benefits for Tesla. However, his increasingly political stance on social media and association with the controversial Department of Government Efficiency appear to be tarnishing the company’s reputation, particularly in the U.S. and Europe.
This decline has coincided with a rise in vandalism and arson attempts against Tesla vehicles across the United States. In Loveland, Colorado, a Tesla store and service center have been targeted repeatedly, with the most recent attack occurring on Friday, according to local authorities.
Adding to Musk’s troubles, X suffered a severe outage on Monday, with tens of thousands of users reporting disruptions, according to Downdetector.com.
Tesla’s downturn is part of a broader market decline amid investor concerns over Trump’s economic policies. The Nasdaq Composite fell by over 3%, with Tesla shares alone dropping 14% by mid-day Monday. By market close, shares had fallen 15.43%, marking Tesla’s worst trading day since September 2020.
Musk’s net worth has taken a substantial hit, dropping by $139.4 billion from his record $464 billion in December. According to Forbes, his fortune now stands at $324.6 billion, though he remains the world’s richest person by a margin of $115 billion. Monday’s stock drop alone wiped out $18 billion from his wealth.
Tesla is also facing its longest losing streak since it went public in 2010—recording seven consecutive weeks of losses. The stock has been in freefall since Musk assumed his self-styled role as Trump’s “First Buddy” in Washington.
Credit: Independent.co.uk
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