In This Article:
After a slight rebound earlier this week, Tesla's TSLA stock is back to falling, keeping with its recent performance. Even U.S. President Donald Trump's purchase of one hasn’t done much to spark real momentum for the electric vehicle (EV) leader.
After enjoying significant growth throughout the final months of 2024 and through early 2025, TSLA has lost its previous momentum and isn’t showing signs of a rebound. As reports of declining sales and shifting consumer sentiment continue to trend, it's hard to ignore the company’s questionable outlook.
Many of these problems can be traced to CEO Elon Musk, who is preoccupied with his new responsibilities at the Department of Government Efficiency. His absence at Tesla’s manufacturing facilities is being felt as share prices continue to trend downward.
Musk has lost a lot of money as TSLA stock falls, but he could end up losing something else.
Musk’s intertwined business empire could be in trouble
Tesla may be the company for which Musk is best known, but his assets include several other prominent tech names, including SpaceX and X (formerly Twitter). This wide array of responsibilities concerned investors long before he accepted his new position at DOGE.
Now that he has this new position, Musk is spending even less time running his companies, and things haven’t been going well for any of them. While Tesla stock fell last week, a SpaceX rocket exploded during a test flight, and a cyberattack took X down, although users regained access fairly quickly.
Related: Tesla Bull sounds the alarm on Elon Musk’s leadership
This week, reports surfaced that TSLA stock’s poor performance has resulted in significant losses for Musk. On Monday, March 10, he lost roughly $4.7 billion for every $10 the stock price declined, amounting to a total loss of $18.8 billion.
As Musk is still the world’s wealthiest person, that type of loss likely doesn’t mean much right now. However, according to attorney Tristan Snell, Musk’s problems could be about to get much worse if Tesla stock keeps falling, extending beyond the loss of personal fortune.
In the March 12 post, Snell highlights that Musk initially used his TSLA stock holdings as collateral to purchase X in 2022, ultimately financing the $44 billion dollar deal by using his own money, loans from banks, and equity investments. “If Tesla stock keeps crashing, the banks/creditors could repossess Twitter,” he states.