Elon Musk has been facing some serious challenges lately, especially with Tesla’s stock taking a major tumble.
His ally, Donald Trump, even stepped in on Truth Social to defend him, arguing that “the Radical Left Lunatics” are out to damage “Elon’s ‘baby.’”
Has plummeted more than 50%
A big part of the turmoil comes from Wall Street’s volatility, largely driven by Trump’s sudden shifts in U.S. trade policy. Unfortunately for Musk, this has resulted in a massive financial blow.
Just last week, he saw nearly $9 billion wiped from his fortune as Tesla’s stock took a nosedive. By Thursday’s close, shares had fallen 6%, slashing Musk’s net worth by $8.8 billion. Since December, his wealth has plunged from $464 billion to just $342.8 billion.
Tesla’s stock has now dropped over 50% since December, leaving both investors and analysts stunned.
By mid-December 2024, Tesla’s stock was hovering near a record high of approximately $480 per share. However, by early March 2025, it had plummeted to around $220, erasing more than $800 billion in market value—marking the steepest drop the company has seen in years.
This sharp decline in Tesla’s stock coincides with the period Elon Musk has been involved in government affairs during Donald Trump’s presidency. As many are aware, the Tesla and SpaceX founder was appointed head of DOGE (the newly established Department of Government Efficiency), where his primary focus is aggressive cost-cutting.
Officially, Musk’s role is to eliminate what he considers unnecessary government expenditures, and in pursuit of this, he has begun significantly downsizing the federal workforce.
Tesla’s struggles appear to be weighing heavily on Musk. In a recent interview with Larry Kudlow on Fox Business, the billionaire entrepreneur looked visibly strained and emotional as he spoke about the mounting pressures on his companies.
Musk acknowledged the growing difficulty of managing multiple businesses, admitting that the challenge has become even more overwhelming as Tesla faces its largest stock drop in more than three years.
Many years since I saw Elon almost crying in an interview, it comes to mind when top astronauts called SpaceX failures and he said ‘I’ll never give up’, in tears. I believe he’s close to a breakdown. He’s been taken in the wrong place, IMHO. Politics isn’t his playing field. pic.twitter.com/bR5K2gP53m
— 𝒰𝓂𝒷𝒾𝓈𝒶𝓂 (@Umbisam) March 10, 2025
Adding to the pressure, Tesla is also dealing with a worldwide decline in electric vehicle sales, further complicating Musk’s already mounting challenges.
However, despite these obstacles, Musk still has the unwavering support of his friend Donald Trump. In fact, rather than backing away, Trump has doubled down on his defense of Musk, making multiple public statements in recent days to show his support.
Donald Trump just turned the White House into a Tesla showroom!
March 10 was a rough day for Elon Musk, but he got an unexpected boost from former President Donald Trump, who took to Truth Social urging his supporters to stand by Tesla.
“To Republicans, Conservatives, and all great Americans, Elon Musk is ‘putting it on the line’ in order to help our Nation, and he is doing a FANTASTIC JOB!” Trump wrote. “But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s ‘baby,’ in order to attack and do harm to Elon, and everything he stands for. They tried to do it to me at the 2024 Presidential Ballot Box, but how did that work out? In any event, I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American. Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”
This show of loyalty was surprising, especially since Trump had previously criticized electric vehicles, dismissing them as only useful “if you have a towing company.”
But on March 11, Trump doubled down on his endorsement of Musk’s company, showcasing several Tesla models and publicly praising the billionaire.
“I’m going to buy a brand-new Tesla,” Trump told reporters, emphasizing that he would pay “full price.” He also quipped, “everything’s computer.”
What do you think about Trump’s support for Musk? Drop your thoughts in the comments and don’t forget to share this story so we can hear from others!