{"id":256455,"date":"2025-03-11T07:33:05","date_gmt":"2025-03-11T07:33:05","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/11\/elon-musks-empire-shaken-tesla-tumbles-x-crashes-amid-us-recession-fears-the-times-of-india\/"},"modified":"2025-03-11T07:33:06","modified_gmt":"2025-03-11T07:33:06","slug":"elon-musks-empire-shaken-tesla-tumbles-x-crashes-amid-us-recession-fears-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/11\/elon-musks-empire-shaken-tesla-tumbles-x-crashes-amid-us-recession-fears-the-times-of-india\/","title":{"rendered":"Elon Musk’s empire shaken: Tesla tumbles, X crashes amid US recession fears – The Times of India"},"content":{"rendered":"
\"Elon<\/div>


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According to reports, Tesla still trades at huge premiums, as measured by forward price-to-earnings ratios.<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

March 10 was a brutal day for Elon Musk-the world’s wealthiest person . Tesla\u2019s stock took a sharp nosedive, his social media platform X (formerly Twitter) suffered widespread outages due to what he called a \u201cmassive cyberattack,\u201d and protests against his leadership role (DOGE) in President Donald Trump<\/a>\u2019s administration continued across the US.
Driving the news<\/span><\/p>\n

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  • Tesla shares<\/keyword> plunged more than 15% on Monday, extending their brutal year-to-date decline to nearly 45%, as investors worried about slowing sales, increased competition, and CEO Elon Musk<\/keyword>\u2019s growing political entanglements.<\/li>\n
  • Adding to Musk\u2019s woes, his social media platform X (formerly Twitter) suffered widespread outages, 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.”<\/li>\n
  • The Tesla’s $125 billion market cap wipeout came amid a broader selloff in US stocks. In fact, these twin crises for Musk unfolded against a broader backdrop of market panic. The Nasdaq tumbled 4%, its worst single-day performance since 2022, while the S&P 500 and Dow Jones also fell sharply. Investors fear the Trump administration\u2019s shifting stance on tariffs and economic policy could trigger a slowdown. Treasury Secretary Scott Bessent\u2019s warning of a \u201cdetox period\u201d as public spending is slashed only heightened those concerns.<\/li>\n
  • Tesla\u2019s post-election rally has evaporated, with shares now trading 11% lower than they were on the day Trump won the presidency.<\/li>\n<\/ul>\n<\/div>\n

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    \"Tesla<\/div>\n<\/div>\n

    The big picture<\/span>
    Musk is facing mounting pressure on multiple fronts: Tesla\u2019s declining sales, political backlash against his role in Trump\u2019s administration, and growing skepticism over the company\u2019s lofty valuation.
    In Europe, Tesla sales have plummeted this year\u2014down 71% in Germany, 45% in Norway, 44% in France, and 44% in Spain. In China, the company is losing ground to domestic competitors offering cheaper and more advanced electric vehicles. Even in the US, Tesla has resorted to aggressive discounts, low-interest financing, and free Supercharging to prop up demand.
    Competition is heating up, with China\u2019s BYD surpassing Tesla in EV sales and rolling out driver-assistance technology as a free feature\u2014undercutting Tesla\u2019s pricey Full Self-Driving (FSD) package.<\/p>\n

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    • Tesla\u2019s delivery numbers are trending downward, despite aggressive price cuts and financing incentives:<\/li>\n
    • Q1 deliveries are tracking for a 4% drop, according to Evercore ISI.<\/li>\n
    • Tesla has launched 0% financing deals and free Supercharging to stimulate demand.<\/li>\n
    • The Cybertruck launch has been rocky, with initial sales well below Musk\u2019s estimates.<\/li>\n
    • Edmunds analyst Ivan Drury: “Tesla was already facing increased competition across all price points. Now, politics adds another layer of polarization.”<\/li>\n<\/ul>\n<\/div>\n

      What they\u2019re saying<\/span><\/p>\n

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      • Investor Doug Boneparth on X: \u201cMassive crash in Tesla stock. Musk will be fine. Retail investors? Not so much.\u201d<\/li>\n
      • JP Morgan analyst Ryan Brinkman: \u201cFor how much longer can the stock remain divorced from the fundamentals?\u201d<\/li>\n
      • Protest organizer Alex Winter (in Rolling Stone): \u201cDetaching Musk from Tesla would be a meaningful blow against this administration \u2026 and a strike against what they hold most dear: money and power.\u201d<\/li>\n<\/ul>\n<\/div>\n
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        To Republicans, Conservatives, and all great Americans, Elon Musk is \u201cputting it on the line\u201d in order to help our Nation, and he is doing a FANTASTIC JOB! But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World\u2019s great automakers, and Elon\u2019s \u201cbaby,\u201d in order to attack and do harm to Elon, and everything he stands for. They tried to do it to me at the 2024 Presidential Ballot Box, but how did that work out? In any event, I\u2019m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American. Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???<\/p>\n

        US President Donald Trump<\/p>\n<\/div>\n

        Between the lines: The #TeslaTakedown movement and Musk\u2019s political troubles<\/span>
        For years, Musk\u2019s cult-like following helped insulate Tesla from market realities. But now, that aura is fading, especially as his deepening ties to the Trump administration alienate a growing segment of consumers.
        Musk\u2019s role as head of the Department of Government Efficiency (DOGE)\u2014the administration\u2019s controversial effort to slash federal agencies\u2014has made him a polarizing political figure. His sweeping layoffs and budget cuts have sparked backlash, including nationwide protests at Tesla dealerships.
        The #TeslaTakedown movement has gained traction on social media, urging Tesla owners to ditch their vehicles and investors to dump their stock. Protesters gathered outside Tesla showrooms in multiple cities over the weekend, with signs reading \u201cStop Musk\u2019s Crime Spree\u201d and \u201cElon is Trump\u2019s Executioner.\u201d Some Tesla owners have even defaced or covered up their car\u2019s logo to distance themselves from Musk, the Axios report said.
        Adding fuel to the fire, Musk himself has embraced right-wing rhetoric, frequently engaging with controversial figures on X. His political leanings, once seen as a sideshow, are now becoming a business liability. A growing number of consumers are rethinking their Tesla purchases, unwilling to support a CEO they view as aligned with the administration\u2019s most extreme policies.
        Even some investors are starting to wonder if Musk\u2019s political involvement is distracting him from running Tesla. The company has fallen behind in key areas\u2014its long-promised $25,000 car was quietly scrapped last year, while competitors like China\u2019s BYD are racing ahead with innovations. Tesla\u2019s recent focus on robot axis and AI-driven vehicles has yet to materialize into tangible revenue, making the stock\u2019s once-lofty valuation harder to justify.
        Musk\u2019s response: \u2018Always look on the bright side\u2019<\/span>
        According to a report in Axios, even as his personal net worth took a $16 billion hit on March 10, Musk appeared unfazed.
        Asked about Tesla\u2019s struggles in a Fox Business interview, Musk laughed it off, quoting Monty Python: “Always look on the bright side of life!”
        In the past too, Musk has quoted Monty Python.<\/p>\n

        His confidence has long reassured Tesla investors, but some are starting to question whether the optimism is still warranted.<\/p>\n

        X outage: Cyberattack or self-inflicted wounds?<\/span><\/p>\n

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        • Musk has drastically cut X\u2019s security staff since taking over Twitter, raising questions about whether the outage was due to a cyberattack\u2014or simply self-inflicted infrastructure failures.<\/li>\n
        • Reports indicate that over 40,000 users were affected during peak outages.<\/li>\n
        • Cybersecurity experts say that while botnet attacks are common, Musk\u2019s claim that Ukraine was involved is questionable without further evidence.<\/li>\n
        • Since Musk acquired X, the platform has suffered multiple technical issues\u2014leading some analysts to blame underinvestment in infrastructure.<\/li>\n<\/ul>\n<\/div>\n

          What\u2019s next?<\/span>
          Tesla\u2019s path forward is uncertain. While Musk insists the company will be fine long-term, it faces serious short-term challenges:
          Can Tesla reverse its sales slump? Musk has promised a $25,000 EV, but no firm timeline exists.
          Will political backlash grow? The #TeslaTakedown movement is planning more protests, and some Tesla owners are even selling their cars in protest.
          How will tariffs impact Tesla? Trump\u2019s looming trade war with China and Europe could further hurt Tesla\u2019s supply chain.
          Can Musk stabilize X? With user engagement already declining, continued outages and security concerns could push advertisers and users away.
          Tesla\u2019s stock has always defied gravity\u2014but for the first time in years, investors are wondering whether Musk\u2019s magic is wearing off.
          (With inputs from agencies)<\/div>\n