Tesla & SpaceX: Elon Musk’s business ventures Tesla and SpaceX is having a tough time because SpaceX’s Starship test failures and Tesla’s stock struggles after the election are raising concerns. These challenges worry investors and experts. These latest happenings led the companies facing issues with the position in the market. Let’s dig deeper into the impact from recent event to the companies and their market position.
What are the factors that cause decline of Tesla’s Stock
Tesla stock hit after the election people thought, Elon musk spreading a negative impact and support political agendas by taking authority of X (formerly Twitter). The lose is about $700 billion as of now March 7, 2025 the stock fell another 4.6% so This adds to a drop over 28% in just one month. This is really a hard time for Elon Musk.
Sales Performance
After losing in the big market of Europe and China Company left out from the market, they have to because the drop points almost fell 50% down in January 2025. So, this causes Tesla value is under $1 trillion, This is the first time it’s been that low since late 2024.
Political Involvement
Elon Musk involvement as he is close advisor of Donald Trump affect the investors to worried about their investment and trust looses in the company after no new thing come up from Tesla.
Market Competition
The rising competition in Electric car tesla have backed down with Chinese companies. But as of now Tesla has more rivals in the market so the sales are dropped in EU and China, They aren’t selling They aren’t selling.
SpaceX’s Starship Test Failures: Impact on Market Perception
Lars Halter DW business said for a second consecutive times SpaceX is picking up the pieces after a launch ended in explosive fashion. Elon Musk involvement as close advisor of Donald Trump make investors worried tesla loses the trust of them. Elon must have taken off the focus on company.
Dan Ives of Wedbush Securities, argues that concerns over Elon’s political involvement are exaggerated and mention all the Tesla’s potential in innovation and technology. Especially in the sector of autonomous driving and robotics. He maintains a price target of $550 for Tesla shares.
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Reactions to this incident include:
- Criticism of Government Spending: Some people are not happy about Elon’s involvement with the government Critics say Starship’s problems show the government wastes money. This is because Elon reliance government wasting money into this project.
- Safety Concerns: The explosion heightened the situation more critical and made everyone worry about airspace safety and potential risk with the future launches.
Conclusion
Elon Musk’s companies are dealing with big problems right now These recent events affected their market positions and investor confidence. These issues have hurt their value in the market position which is already drop down by 29%. Tesla’s stock is down because sales are slow. Political issues and more EV competition also play a role in Tesla slow sales. SpaceX has also faced recent rocket test failures sparked criticism and safety concerns. The next few months will be crucial in determining whether these are short-term issues or larger problems for Musk’s businesses.
