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Adding to Elon Musk‘s problems, his social media platform X, formerly known as Twitter, experienced widespread outages on March 10, with tens of thousands of users reporting disruptions. Musk blamed a “massive” cyberattack that he claimed was likely orchestrated by a “large, coordinated group and/or a country.”
From Tesla stocks plummeting to social media platform X suffering global outages three times in a day, Elon Musk had a brutal day. Not just this, Tesla facilities around the globe have been facing attacks and protests against his leadership role in President Donald Trump’s Department of Government Efficiency (DOGE), which has also intensified across the US.
Elon Musk’s empire shaken
Elon Musk has experienced a significant $120 billion drop in net worth due to Tesla’s declining share price and increased political scrutiny. The tech billionaire faced a massive setback on Monday with Tesla stocks taking a sharp nosedive by over 15 percent and his social media platform X experiencing major outages. Both incidents coincided with market panic and increasing criticism of Musk’s alignment with the Trump administration.
Tesla shares plummeted over 15% on Monday, deepening their year-to-date loss to nearly 45%, as concerns grew over slowing sales, rising competition, and CEO Elon Musk’s increasing political involvement. Tesla’s sell-off on Wall Street intensified on Monday, with shares of the electric vehicle maker plunging 15%, their worst day on the market since September 2020.
Tesla’s $125 billion market cap loss occurred alongside a broader selloff in US stocks. Musk’s twin crises played out against a backdrop of market turmoil, with the Nasdaq plunging 4%—its worst single-day drop since 2022—while the S&P 500 and Dow Jones also saw significant declines.
Investors are worried that the Trump administration’s evolving stance on tariffs and economic policy may lead to a slowdown. Adding to these concerns, Treasury Secretary Scott Bessent warned of a “detox period” as public spending is reduced. Tesla’s post-election rally has evaporated, with shares now trading 11% lower than they were on the day Trump won the presidency.
Why is Musk facing a massive backlash?
Elon Musk has been facing mounting pressure on multiple fronts, including declining sales, political backlash from his association with the Trump administration, and increasing doubts about the company’s high valuation. In Europe, Tesla’s sales have dropped significantly this year—down 71% in Germany, 45% in Norway, and 44% in both France and Spain.
In China, local competitors offering cheaper and more advanced electric vehicles are eroding Tesla’s market share. Even in the US, the company has turned to aggressive tactics like deep discounts, low-interest financing, and free Supercharging to maintain demand.
Meanwhile, competition is intensifying, with China’s BYD overtaking Tesla in EV sales and offering advanced driver-assistance technology for free—directly challenging Tesla’s expensive Full Self-Driving (FSD) package.
Tesla’s delivery numbers are trending downwards despite aggressive price cuts and financing incentives such as 0% financing deals and free Supercharging to boost demand.
\#TheTeslaTakedown movement and Musk’s political troubles
For years, Elon Musk’s devoted fan base shielded Tesla from market pressures. But that protection is fading, especially as his growing ties to the Trump administration alienate more consumers. Musk’s position as head of the Department of Government Efficiency (DOGE)—a controversial initiative to slash federal agencies—has made him a divisive political figure. His aggressive budget cuts and mass layoffs have triggered public backlash, including nationwide protests at Tesla dealerships.
The #TeslaTakedown movement is gaining momentum on social media, encouraging Tesla owners to abandon their vehicles and urging investors to sell their stock. Over the weekend, protesters gathered outside Tesla showrooms in several cities, holding signs like “Stop Musk’s Crime Spree” and “Elon is Trump’s Executioner.” Some Tesla owners have even defaced or covered their car logos to distance themselves from Musk, according to Axios.
Musk’s public embrace of right-wing rhetoric, including frequent engagements with controversial figures on X, has further fueled the controversy. Once viewed as an eccentric sideshow, his political leanings are now seen as a potential business liability. Increasingly, consumers are reconsidering Tesla purchases, unwilling to support a CEO they perceive as aligned with extreme policies. Even some investors worry that Musk’s political involvement is diverting his focus from managing Tesla.
The company is also falling behind in key areas. Its long-promised $25,000 electric vehicle was quietly canceled last year, while competitors like China’s BYD continue to lead in innovation. Tesla’s heavy emphasis on robotics and AI-driven vehicles has yet to translate into significant revenue, making its once-lofty stock valuation harder to defend.
Despite these challenges, Musk remains outwardly nonchalant. According to Axios, even after his net worth dropped by $16 billion on March 10, he appeared unfazed. In a Fox Business interview addressing Tesla’s troubles, Musk laughed it off, quoting Monty Python: “Always look on the bright side of life!” While his confidence has historically reassured investors, some are beginning to question whether his optimism is still justified.
What’s next?
Tesla’s future is uncertain. While Elon Musk remains confident in the company’s long-term success, it faces significant short-term hurdles. Can Tesla rebound from its sales slump? Although Musk has promised a $25,000 electric vehicle, there’s no clear timeline for its release.
Political pressure is also mounting—the #TeslaTakedown movement is organizing more protests, with some owners selling their cars in opposition. Trade tensions add another layer of risk, as potential tariffs from a Trump-led trade war with China and Europe could disrupt Tesla’s supply chain. Meanwhile, Musk’s focus on stabilizing X remains a concern.
Declining user engagement, recurring outages, and security issues threaten to drive away both advertisers and users. Tesla’s stock has long defied expectations—but for the first time in years, investors are questioning whether Musk’s magic is fading.
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