The continuous decline in the share price of the electric vehicle manufacturer 'Tesla' and the sharp decline in the market valuation of the social network company 'X' have raised questions about the 'efficiency' of Elon Musk.
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Elon Musk, who has been able to determine the future of various agencies of the American government, which has thousands of employees, from standing next to the president's chair in the White House while carrying his son on his shoulders, is struggling to win the trust of his investors and consumers.
In particular, the continuous decline in the share price of the electric vehicle manufacturer "Tesla" and the sharp decline in the market valuation of the social network company "X" have raised questions about the "efficiency" of Elon Musk.
Musk's political style, which keeps talking about the affairs of every country and is harsh even on matters that have nothing to do with him or his business, is having a negative impact on his business, according to Bloomberg's analyst John Doe. Tesla's market has been affected due to the options that its rival company has increased in electric vehicles with Musk's radical right-wing statements one after the other.
In January 2025, Tesla's business has fallen by 75% in Spain, 46% in Poland, 42% in Sweden, 59% in Germany and 63% in France. Across Europe, demand for Tesla has fallen by nearly 50 percent. Demand in China, Tesla's biggest market, fell by nearly 12 percent this month. The company is also struggling to grow its business in countries like Japan and Australia. It is assumed that consumers are moving away from Tesla due to increasing competition with companies like Chinese brand BYD and Musk's political involvement.
Musk's 'X', formerly known as Twitter, is also facing financial difficulties. Musk, who bought then-Twitter for $44 billion in 2022, recently offered to buy OpenAI, ChatGPT's parent company. It proved very productive for him. Because Sam Altman, the head of OpenAI, offered to buy X for a total of 9.74 billion in addition to selling ChatGPT. Since Musk bought Twitter, its valuation has fallen sharply. In 2024, Fidelity Investments estimated X's market value to be around $9.4 billion.
After Musk overhauled X's content moderation policy and adopted a volatile strategy, the advertiser fell away. Due to Musk's political involvement and policy changes, a significant number of users deactivated their accounts from X. After he bought Twitter, the number of users on alternative apps like Mastodon, BlueSky, Reddit, Threads, Counter Social increased significantly. As the brand value declines, X's valuation is getting weaker.
Recently, in January, the US Securities and Exchange Commission has even filed a case against Musk saying that the necessary rules were not followed in the Twitter share transfer process at the time. Musk's legal troubles are not limited to the US. A German court has ordered X, which is owned by Musk, to provide access to details of political-related posts, questioning the transparency and data security of them.
Musk's radical right-wing ideas spread through his platforms have been criticized and demanded by the political leadership in countries like France and Britain. Musk's company faces increasingly stringent regulations in China. Musk has already spoken to the Brazilian government about X. Legal monitoring of his company has been started in different countries in terms of labor and environment.
Musk's challenge, fueled by political participation, is not limited to business. Musk, who has been receiving government contracts worth about 3 billion US dollars for the past decade and a half, has raised questions about the conflict of interest in his professional participation due to his responsibilities in the Trump administration. Time magazine reported that Tesla's name has now been removed from the contract process for Tesla vehicles worth about 400 million US dollars, which will be purchased by the US State Department after some parliamentarians and businessmen raised their voices.
The US National Highway Traffic Safety Administration has launched multiple legal investigations into Tesla's autonomous vehicles. There have been lawsuits at different levels of courts on the decisions made by Musk in the US Agency for International Development and other agencies of the US government through the Department of Government Efficiency (DOJ). Melanie Stansbury, Gerry Connolly, Robert Garcia, Bernie Sanders, Alexandria Acasio Cortez, and other public representatives have raised public questions about Musk's style and conflict of interest.
Musk's latest expression and style is a response to his artificial intelligence (AI) platform 'XAI', which may further push his company's brand and business image, at least in the European region. But the political proximity with Trump is benefiting Musk more than the disadvantages. In December, the market showed high confidence in Musk, who has gained unprecedented access and influence in the US government apparatus with the entry of the new administration into the White House. Tesla's shares soared in December after Musk won a $800 million contract for SpaceX.
For his AI platform 'XAI', Musk has also collected an investment worth 6 billion dollars. Musk, who has prepared or started gigafactory, infrastructure and other projects for his company Tesla, Starlink, etc. in Britain, Israel, China, India, Brazil and other countries, is sure to have more access and influence in the American government. An active role in government is expected to help Musk further expand his global influence, diversify and expand markets, and deploy the latest technology in ventures such as SpaceX.
analysts and economists note that Musk's political activism has overshadowed his business interests. "Ilan's growing friendship with Trump has not only changed public perception of him, but added unnecessary scrutiny from federal regulators," Wired technology journalist Jane Smith says.
