Elon Musk is currently enduring one of the most challenging periods of his professional life. Juggling his leadership at Tesla, SpaceX, and X (formerly Twitter) alongside a new role in government under President Donald Trump has led to increased scrutiny. Investor confidence is waning, with Tesla’s stock plunging nearly 40% since the start of the year.
Long before these issues became evident to the financial world, Musk’s father, Errol Musk, anticipated the dangers. His caution last November against Elon stepping away from his enterprises to focus on politics now seems strikingly accurate.
Errol Musk’s Cautionary Message: “He Can’t Just Step Away”
In an interview with Al Arabiya News in November 2024, Errol Musk expressed his reservations about Elon’s move toward governmental responsibilities. He emphasized that his son's businesses require his undivided attention, warning that abandoning his leadership could have serious repercussions.
“Elon has a tremendous task on his hands. He has a couple hundred thousand employees and a lot of very serious things going on in his life, so he has to be available for all that he started… [he] can’t just walk away from things.”
Errol acknowledged Elon’s aptitude for enhancing government efficiency, but stressed that his core skill lies in building businesses rather than spending time in bureaucratic meetings.
“To have him sit in an office somewhere in Washington, waiting and twiddling his thumbs—no, no. He has to be called upon on a sort of consultancy basis.”
At that moment, Errol Musk was among the few to voice these apprehensions. Today, those concerns resonate with numerous investors.
Tesla’s Stock Plummets as Musk Admits Managing His Firms Is Hard
Since President Trump assumed office in January 2025, Tesla’s share price has sharply declined, dropping roughly 40%. On a single day this week, Tesla’s shares tumbled 15%, erasing $130 billion in market capitalization—exceeding the combined value of Ford and General Motors.
As challenges mount, prominent figures have openly criticized Musk for being distracted by politics. Dave Portnoy, founder of Barstool Sports, took to X (formerly Twitter) recently, questioning when Musk would refocus on his business after the stock's drop.
During a Fox Business interview, Musk admitted he is operating his companies with “great difficulty.” Investors are increasingly skeptical about whether that phrase understates the seriousness of the situation.
Tesla’s Sales Decline and Public Perception Takes Hit Amid Political Controversies
Tesla’s troubles extend beyond Wall Street. European sales fell by 45% in January, despite the overall electric vehicle market’s growth.
In the U.S., a recent survey from Morning Consult showed that 32% of consumers would now avoid purchasing a Tesla—an increase from 27% the previous year. Growing dissatisfaction with Musk’s political engagement is damaging the company’s reputation.
Protests directed at Tesla have erupted across Europe and America, with critics accusing Musk of being too preoccupied to effectively run his enterprises.
Trump Supports Musk, Blames "Radical Left Lunatics" for Tesla's Woes
In response to Tesla’s difficulties, Donald Trump has spoken out in Musk’s defense, blaming “Radical Left Lunatics” for attempting to undermine Tesla. Trump announced plans to purchase a Tesla himself as a sign of solidarity.
Meanwhile, some experts like Dan Ives from Wedbush Securities believe Tesla’s stock decline might represent a chance to buy, so long as Musk refocuses on managing his businesses effectively.
The Critical Question: Can Musk Recover From This Downturn?
Errol Musk’s warning revolved around one key point: Elon Musk’s greatest talents lie in entrepreneurship, not politics.
“I can’t think of anyone more suited to a role like this than Elon,” he said last November. “But he has to focus on his businesses.”
With Tesla’s shares falling, sales dropping, and public backlash increasing, Errol’s concerns appear validated. The pivotal question now is whether Elon Musk will heed this advice and step back from politics, or if Tesla’s challenges will continue to mount.
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