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Elon Musk dealt second major blow as another disaster strikes

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It’s been a tough week for Elon Musk for multiple reasons.

Tesla (TSLA) stock continues to trend downward as slumping European sales and shifting consumer sentiment cloud the company’s outlook. The electric vehicle (EV) market is complicated, and Musk’s company is increasingly becoming less dominant.

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Meanwhile, Musk’s quest to gain control of OpenAI is facing new hurdles. A California judge recently denied his request to pause OpenAI’s for-profit transition, deciding to let the case come to trial later this year.

In addition, President Donald Trump recently took a step to curb Musk’s power, telling members of his cabinet that they had the power to make staff cuts, not Musk. According to him, Musk and the so-called Department of Government Efficiency (DOGE) will only play an advisory role.

However, yesterday brought even more bad news for Musk.

Elon Musk is facing a new setback regarding a company for which he has always had big plans.<br>(Photo by Richard Bord/WireImage)Richard Bord&sol;Getty Images
Elon Musk is facing a new setback regarding a company for which he has always had big plans.
(Photo by Richard Bord/WireImage)Richard Bord/Getty Images

One of Musk’s companies just experienced a major setback

Musk might have thought his week couldn’t get any worse after Trump curbed his power. But on March 6, a disaster struck one of his companies and not for the first time, causing instant chaos and impacting other industries in the process.

SpaceX, Musk’s space exploration and technology company, recently launched a massive rocket on a test flight, and it quickly spiraled out of control.

Related: Elon Musk's failed SpaceX launch grounded Orlando flights

“The SpaceX Starship rocket that Elon Musk is promising to one day bring to Mars exploded eight minutes into its eighth test flight,” reports TheStreet’s Veronika Bondarenko.

This isn’t the first SpaceX flight to experience disaster in mid-air, and it’s not even the first one this year. On January 16, 2025, a starship from Musk’s company exploded during a test flight, forcing the Federal Aviation Administration (FAA) to halt flights due to falling debris from the rocket temporarily.

Less than three months later, the company experienced a concerningly similar phenomenon, in which another SpaceX starship exploded during a test flight. As with the disastrous January launch, flights had to be diverted due to the incident. Per the Financial Times: