Elon Musk has been facing some serious challenges lately, especially with Tesla’s stock taking a major tumble.

His ally, Donald Trump, even stepped in on Truth Social to defend him, arguing that “the Radical Left Lunatics” are out to damage “Elon’s ‘baby.’”

Has plummeted more than 50%

A big part of the turmoil comes from Wall Street’s volatility, largely driven by Trump’s sudden shifts in U.S. trade policy. Unfortunately for Musk, this has resulted in a massive financial blow.

Just last week, he saw nearly $9 billion wiped from his fortune as Tesla’s stock took a nosedive. By Thursday’s close, shares had fallen 6%, slashing Musk’s net worth by $8.8 billion. Since December, his wealth has plunged from $464 billion to just $342.8 billion.

Tesla’s stock has now dropped over 50% since December, leaving both investors and analysts stunned.

By mid-December 2024, Tesla’s stock was hovering near a record high of approximately $480 per share. However, by early March 2025, it had plummeted to around $220, erasing more than $800 billion in market value—marking the steepest drop the company has seen in years.

This sharp decline in Tesla’s stock coincides with the period Elon Musk has been involved in government affairs during Donald Trump’s presidency. As many are aware, the Tesla and SpaceX founder was appointed head of DOGE (the newly established Department of Government Efficiency), where his primary focus is aggressive cost-cutting.

Officially, Musk’s role is to eliminate what he considers unnecessary government expenditures, and in pursuit of this, he has begun significantly downsizing the federal workforce.

Tesla’s struggles appear to be weighing heavily on Musk. In a recent interview with Larry Kudlow on Fox Business, the billionaire entrepreneur looked visibly strained and emotional as he spoke about the mounting pressures on his companies.

Musk acknowledged the growing difficulty of managing multiple businesses, admitting that the challenge has become even more overwhelming as Tesla faces its largest stock drop in more than three years.