Musk's Setback: Tesla Stock Drops Significantly and Major Outage at X

Elon Musk faced a challenging day on Monday as Tesla's stock experienced a significant decline, and X, previously known as Twitter, encountered major outages affecting thousands of users.

Tesla's Stock Plummets

Tesla's shares plummeted by over 51 percent from their all-time high, which was established in December. This decline has dropped Tesla's stock price to levels not seen since before Donald Trump's election victory in November.

Market traders had previously anticipated that Musk's close ties with the Trump administration might benefit the company's stock by facilitating favorable regulations. However, recent posts from Musk on social media that have taken a political tone, along with his association with a controversial government department, seem to have negatively impacted Tesla's brand reputation both in the U.S. and Europe.

Reports indicate a rise in incidents of vandalism and arson targeting Tesla vehicles across the country, particularly in places like Loveland, Colorado, where multiple events of this nature have been reported at a Tesla store and service center.

Impact of X Outages

On the same day, X suffered severe outages that left tens of thousands of users unable to access its services, according to Downdetector.com. These technical issues added to the turmoil surrounding Musk.

Concerns Over Economic Policies

The stock dip for Tesla is part of a broader trend of losses in the stock market, influenced by concerns over Trump's economic policies, which have contributed to a drop of over 3 percent in the tech-heavy Nasdaq Composite.

As Monday progressed, Tesla shares further declined, falling by more than 14 percent after UBS lowered its forecast for the automaker's first-quarter deliveries.

In the past several weeks, Tesla's stock has continuously fallen, marking the company's longest losing streak since it began trading on the Nasdaq in 2010, with losses accumulating since Musk's self-assigned role as “First Buddy” in Washington.

Musk's Financial Losses

According to Forbes, Musk's net worth has decreased dramatically, dropping by approximately $139.4 billion from his peak of $464 billion in December, leaving him with a current worth of around $324.6 billion. Despite this significant loss, Musk remains the wealthiest individual on the planet, holding approximately $115 billion more than anyone else.

On Monday alone, Musk's wealth decreased by $18 billion due to the stock market slump. Going into the end of the week, Tesla completed its seventh consecutive week of losses, presenting an uncertain landscape for the electric vehicle manufacturer.

Tesla, stocks, Musk