'With great difficulty': Musk on leading firms amid Tesla's stock plunge

Tesla chief Elon Musk says he is managing his companies 'with great difficulty' as Tesla stock plunges 15 per cent, erasing $130 billion in market value amid investor concerns and policy fears

Elon Musk has said that he is managing his companies "with great difficulty" while working alongside the Trump administration.

 

His remarks came during an interview with Fox Business on Monday after a sharp decline in Tesla's stock, which hit a five-month low.

 

Tesla Inc. experienced its steepest drop in over four years, continuing its downward trend in 2025, as concerns over demand for its electric vehicles mounted on Wall Street. The broad selloff erased $130 billion from Tesla’s market valuation, bringing its stock to the lowest level since October.

 

Concerns among investors

 

Musk’s role as the most recognisable figure associated with DOGE appears to be affecting his businesses, raising concerns among investors, news agency Reuters reported.

 

 

Some investors worry that Musk’s leadership in the Department of Government Efficiency — tasked with reducing government spending — is distracting him from overseeing his companies, including Tesla, SpaceX, X, and xAI.

 

Tesla shares plummeted 15 per cent to $222.15, contributing to a 4 per cent decline in the Nasdaq index. The market downturn was fueled by fears that tariffs imposed by the Trump administration on key US trading partners could push the country toward a recession.

 

On Monday, Tesla’s market value loss exceeded the combined $86 billion worth of Ford Motor and General Motors stock, the report said.

 

Meanwhile, users of X reported widespread outages the same day Tesla shares plunged. Musk attributed the disruption to a cyberattack from Ukraine, but did not provide evidence to support the claim.

 

Tesla’s stock struggles, but investor optimism persists  

 

Despite the recent slump, Tesla’s stock remains priced at significantly higher multiples than traditional automakers, as many investors continue to bet on Musk’s vision for self-driving taxis and humanoid robots.

 

However, Musk’s involvement in large-scale federal workforce reductions at Trump’s request has sparked protests labelled the “Tesla Takedown” across the US.

 

Tesla’s sales in Europe have also been affected, with protests taking place outside a Tesla showroom in Lisbon on Sunday. Protesters held signs reading “Boycott Tesla”, voicing opposition to Musk’s political and business decisions.

 

Tesla chief faces major losses

 

Elon Musk, the world's wealthiest individual, has seen his net worth plummet by $132 billion since the start of the year, according to the Bloomberg Billionaires Index. His fortune, which peaked at $486 billion in December 2024, dropped by $29 billion on Monday alone. The decline is linked to Tesla's stock slump, investor concerns, and weakening sales. Other billionaires, including Jeff Bezos, Mark Zuckerberg, and Bernard Arnault, also face financial losses amid market downturns and policy uncertainties.

 

(With Reuters inputs)