Elon Musk, once revered as a tech visionary, now appears to be more interested in playing a far-right meme than delivering on his promises of self-driving cars and putting men on Mars. His latest antics—wielding a chainsaw on stage at the Conservative Political Action Conference (CPAC) while rambling incoherently about comedy, gold reserves, and government efficiency—is another one of those instances where his transformation from once an entrepreneur to now an erratic sideshow was on full display.
But while Musk indulges in political theater and self-aggrandizing quips, Tesla is experiencing an unprecedented slump in both sales and stock value.
The Spectacle Over Substance
Just a couple of weeks ago, Musk’s bizarre CPAC appearance quickly overshadowed whatever message he had hoped to convey. Dressed in sunglasses, a gold chain, and a t-shirt proclaiming, “I’m not procrastinating, I’m doing side quests,” he paraded on stage, chainsaw in hand, gifted to him by Argentinian President Javier Milei. Musk’s disjointed statements—such as declaring, “I am become meme,” and pondering whether Fort Knox’s gold was real—left viewers bewildered.
Even supporters struggled to defend his erratic performance, as the phrase “Ketamine” trended on X (formerly Twitter), referencing his previously admitted use of the drug. Meanwhile, his ex-girlfriend Grimes publicly pleaded for him to contact her regarding an urgent health emergency concerning one of their children.
His chaotic behavior, now a recurring theme, is more than just a PR disaster—it’s having tangible effects on Tesla’s financial health.
Tesla’s Crashing Sales and Market Cap Decline
DOGE chief and self-proclaimed efficiency expert Elon Musk said that he is running his businesses “with great difficulty,” as shares of his automotive firm Tesla suffered their worst drop in a half-decade, and as his social media company X experienced several outages.
Musk also said during an interview on Fox Business that he expected to remain in the Trump administration for another year.
Tesla’s stock has fallen every week since Musk joined the Trump administration as head of the Department of Government Efficiency, which is engaged in a broad, controversial effort to reduce federal government spending and employee headcount.
The electric vehicle company has lost more than 50% of its market capitalization, equal to nearly $800 billion. “It will be fine long-term,” Musk wrote in a tweet replying to a post on X that noted Tesla’s biggest single-day stock drops in history.
On Monday, Musk said there are currently more than 100 people on DOGE’s team, positioned in nearly every government agency. He said that the number might increase to 200.
“Unless we’re stopped, we will get to $1 trillion of savings,” Musk predicted. Musk’s estimates of savings have been challenged, and DOGE has deleted some of the largest purported savings that it listed on its website.
Since DOGE began its efforts, federal government employment fell by 10,000 jobs in February, according to data released Friday by the Bureau of Labor Statistics.
In addition to Tesla and X, Musk’s other businesses include the space exploration company SpaceX and the neurotechnology company Neuralink.
In Monday’s interview, Fox Business host Larry Kudlow said that as head of DOGE, “You’re giving up your other stuff.”
“How are you running your other businesses?” Kudlow asked.
Musk replied, “With great difficulty,” and chuckled.
“Yeah, I mean,” Musk sighed.
“I’m just here trying to make government more efficient, eliminate waste and fraud, and so far we’re making good progress, actually,” he said. “Our savings at this point exceed $4 billion a day. So it’s very significant.”
Tesla shares closed regular trading down more than 15.4% on Monday.
Musk blamed the outages that X experienced Monday on “a massive cyberattack” from internet protocol addresses originating in the Ukraine area.” However, he did not provide any evidence for that claim.
Tesla’s global sales are plummeting at an alarming rate. In California, a long-time stronghold for Tesla, sales dropped by 11.6% in 2024, with nearly 30,000 fewer Model 3 registrations. While Tesla remains a market leader, the downward trajectory is undeniable.
The situation is even more dire in Europe. In Germany, Tesla sales declined by a staggering 60% in January 2025. In France, the drop was even worse at 63%. Even the UK, where EV sales overall increased, saw an 8% decline in Tesla purchases. China, the largest market for EVs, also reported an 11.5% decrease in Tesla sales, despite the company’s significant investment in its Gigafactory in Shanghai.
A key driver of Tesla’s declining sales is Musk himself. His vocal alignment with far-right politics and controversial policy decisions, including his leadership of Trump’s so-called Department of Government Efficiency (DOGE), have alienated Tesla’s core customer base—wealthy, progressive, urban EV buyers. As Tesla loses support from this demographic, it has yet to gain meaningful traction among Musk’s newfound conservative fanbase, many of whom remain skeptical of EVs.
Stock Plunge: The Market Has Had Enough
Tesla’s stock has taken a nosedive, dropping over 25% in early 2025. The once-iconic EV maker, whose market cap soared past $1 trillion, has now slipped below that milestone. Musk’s entanglement in political controversies, along with lackluster updates to Tesla’s product lineup, has eroded investor confidence. Even Tesla’s much-anticipated software upgrade for its partially automated driving system in China failed to impress, further dampening enthusiasm for the brand.
Compounding these issues, Tesla’s earnings report for Q4 2024 showed an 8% drop in automotive revenue and a 23% decline in operating income. The long-dominant EV maker now faces mounting pressure from competitors like BYD, Rivian, and legacy automakers that have ramped up their EV offerings.
The Ultimate Question: Can Tesla Recover?
With Tesla’s financial outlook growing increasingly grim, Musk’s erratic behavior is no longer just a distraction—it’s a liability. His willingness to prioritize political theatrics over corporate strategy is actively driving customers and investors away. While Tesla’s upcoming Model Y refresh might provide a temporary sales boost, the company’s long-term prospects are uncertain as long as Musk remains more focused on internet memes and conservative rallies than on delivering reliable, competitive EVs.
For years, Musk has cultivated an image of himself as a visionary genius. But as Tesla’s stock and sales continue their downward spiral, it appears that fewer people are willing to buy into the performance.
Source: CNBC, Inside EVs.