Elon Musk is facing increasing scrutiny over his leadership as his businesses — Tesla, X (formerly Twitter), and SpaceX — struggle with major setbacks. The billionaire, who has taken on a more prominent role in politics as an adviser to President Donald Trump, is being questioned about whether his government involvement is detracting from his ability to manage his companies effectively.
A Rough Day for Musk’s Business Empire
Monday, March 11, 2025, proved to be a challenging day for Musk, with all three of his major enterprises suffering setbacks:
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X Outage: The social media platform, formerly known as Twitter, suffered widespread outages throughout the day, frustrating millions of users worldwide.
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Tesla Stock Collapse: Tesla shares plummeted 15%, marking their worst single-day decline since 2020 and erasing all post-Election Day gains.
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SpaceX Explosion: A SpaceX Starship rocket exploded in Florida during launch, scattering debris over a wide area and prompting a Federal Aviation Administration (FAA) investigation.
Musk’s responses to these issues were swift but controversial. He blamed the X outage on a cyberattack from Ukraine, without providing evidence. He accused Democratic donors of orchestrating protests against Tesla and downplayed the SpaceX explosion by stating: "Rockets are hard."
Tesla’s Struggles Intensify
Tesla has faced mounting challenges in recent months, including declining electric vehicle (EV) sales, heightened competition, and political controversies.
Stock Price Collapse
Tesla’s stock plunged more than 15% on Monday, continuing a downward trend that has seen it lose over 50% of its value since December 2024. The decline was driven by several key factors:
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Declining EV Sales: Tesla’s vehicle deliveries in Germany, Europe’s largest EV market, dropped 76% in February compared to the previous year.
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Political Backlash: Tesla has become a target for protests and violence, including shots fired at an Oregon dealership and arson attacks on Tesla charging stations in Boston.
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Investor Concerns: Many investors worry that Musk’s increasing involvement in politics, including his advisory role in the Trump administration, is distracting him from managing Tesla effectively.
In response to the turmoil, President Trump publicly backed Musk, stating on Truth Social: "Elon Musk is putting it on the line to help our nation, and he is doing a FANTASTIC JOB! I’m going to buy a brand new Tesla tomorrow morning as a show of confidence." Musk later thanked Trump in a post on X.
X Goes Dark Amid Cyberattack Allegations
On Monday, X suffered multiple major outages, preventing users from accessing the platform.
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Outages began before 6 AM ET and continued throughout the day, with spikes in user reports at 10 AM and 11 AM, according to Downdetector.
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Musk quickly blamed the incident on a coordinated cyberattack, stating: "There was a massive cyberattack to try to bring down the X system with IP addresses originating from the Ukraine area."
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However, the hacking group Dark Storm later took responsibility for the outage, though cybersecurity experts cautioned that attackers often disguise their true origins.
This is not the first time Musk has blamed cyberattacks for technical failures at X. A live audio conversation between Musk and Trump last year was disrupted, which Musk also attributed to hacking, without providing evidence.
SpaceX’s Setback: Another Rocket Explosion
SpaceX, Musk’s aerospace company, is also facing challenges. Last Thursday, a Starship rocket exploded shortly after launch, marking the second such failure this year. Debris from the explosion was visible for miles and caused flight disruptions in the area.
The first explosion in January scattered wreckage across the Turks and Caicos Islands, prompting safety concerns from regulators.
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The Federal Aviation Administration (FAA) has launched an investigation into SpaceX’s repeated failures.
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Musk shrugged off concerns, stating on X: "Today was a minor setback. Progress is measured by time. The next ship will be ready in 4 to 6 weeks."
While failures are expected in spaceflight, the frequency of SpaceX’s recent issues has raised concerns about whether the company is prioritizing safety as it expands its operations.
Musk’s Expanding Role in Government Sparks Debate
Musk’s political influence has grown significantly since Trump’s return to office. He has taken on a leading role in the Department of Government Efficiency, an initiative aimed at cutting government spending and reducing federal workforce numbers.
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Critics have accused Musk of using his government role to benefit his own businesses, especially as Tesla competes with traditional automakers for federal contracts.
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Trump’s cabinet reportedly clashed with Musk last week, limiting his authority to an advisory role rather than an executive one.
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Some see Musk’s increasing political presence as a distraction from his business ventures, contributing to the challenges currently facing Tesla, X, and SpaceX.
Market Reactions & Economic Implications
The impact of Musk’s struggles extends beyond his businesses and into the broader economy:
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Bloomberg Billionaires Index reported Musk lost $29 billion in net worth on Monday alone, further cementing his recent financial downturn.
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Prediction markets and hedge funds are raising concerns about Tesla’s long-term outlook, with analysts citing Musk’s political involvement as a potential liability.
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Tesla’s decline has sparked investor concerns about the broader EV market, which is already experiencing slower growth amid increased competition from China and legacy automakers.
Despite these issues, Musk remains confident in his leadership. He has insisted that Tesla, X, and SpaceX will recover in the long term. He responded to a concerned Tesla investor by stating simply: "It will be fine long-term."
Is Musk Spreading Himself Too Thin?
The latest challenges facing Tesla, X, and SpaceX have reignited debates over whether Musk is too distracted by his government role to effectively run his businesses.
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Supporters argue that Musk is a visionary leader who thrives under pressure and will navigate these setbacks.
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Critics say his erratic behavior, unverified claims, and political entanglements are damaging his companies’ reputations and bottom lines.
Regardless of which perspective prevails, Musk’s current struggles highlight the risks of simultaneously leading multiple high-profile companies while engaging in politics. Whether Tesla, X, and SpaceX can recover in the coming months remains to be seen, but one thing is clear: Musk’s influence — and the scrutiny surrounding it — is only growing.