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At Risk: Elon Musk's empire on Shaky Ground


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Elon Musk’s vast business empire is beginning to show signs of strain as his falling-out with former ally Donald Trump deepens, casting uncertainty over the future of Tesla, SpaceX, and other ventures under his control. While Musk remains one of the wealthiest people on the planet, his high-profile break with the the president has triggered a market reaction that threatens both investor confidence and future government support.

 

Tesla shares slid 6.8% on Monday, continuing a sharp downward trend that began when Musk publicly criticized Republican budget plans last month. That public rupture evolved into a wider political move when Musk announced he would launch a new political movement—the America Party—with ambitions to influence the 2026 House and Senate elections. Since the beginning of June, Tesla stock has lost about 14% of its value, amounting to more than $100 billion in lost shareholder wealth. Musk himself has seen his personal fortune shrink by nearly $20 billion on paper.

 

The deterioration of Musk’s relationship with Trump could prove costly. As the Republican Party controls all three branches of government, Musk’s businesses now face political headwinds. Investors who once expected Tesla to benefit from favorable regulatory decisions and continued federal contracts for SpaceX are being forced to reconsider.

 

“While the opportunity is outsized, the risks are very significant as well,” wrote Ivana Delevska, founder of Spear Invest, who recently divested from Tesla amid the growing uncertainty. “While the reward potential is clearly here, the risks are significant as well.”

 

The timing of this political drama is especially unfortunate for Tesla. The company began launching its robotaxi fleet in Austin last month, a pivotal development Musk has touted as central to Tesla’s long-term success. However, the company is also losing ground to global competitors like Chinese electric vehicle giant BYD, which is gaining traction across both China and Europe. In the most recent quarter, Tesla’s deliveries fell nearly 14%, a drop partially attributed to the ongoing backlash surrounding Musk’s political forays.

 

SpaceX, meanwhile, is preparing for a potential uncrewed mission to Mars in 2026, an effort that requires consistent focus and stable government relations—both of which could be jeopardized by Musk’s renewed political engagement.

 

William Blair analyst Jed Dorsheimer captured growing investor frustration in a recent research note: “We expect that investors are growing tired of the distraction at a point when the business needs Musk's attention the most and only see downside from his dip back into politics.”

 

Despite recent losses, Musk's wealth remains staggering. According to the Bloomberg Billionaires Index, he was still worth around $361 billion as of Monday, putting him more than $100 billion ahead of the next richest person, Meta’s Mark Zuckerberg.

 

There are also questions about how Musk’s political focus will be received internally. While Tesla’s board has largely supported Musk without reservation, the Wall Street Journal reported earlier this year that the company had quietly begun a process to potentially find a successor CEO. Musk and Tesla chair Robyn Denholm both denied the report.

 

At his privately held companies like SpaceX and xAI, Musk maintains more direct control and closer investor relationships. These firms are also insulated from the fluctuations of public markets and the consumer scrutiny Tesla regularly faces.

 

Still, the overall sentiment from investors is clear. “We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture,” Dorsheimer added, summing up a mood of growing impatience with Musk's political diversions at a time when his companies require his full attention.

 

image.png  Adapted by ASEAN Now from AXIOS  2025-07-09

 

 

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Elon will stilll be around longer than Trump politically and biologically. Except for Tesla, his other 6 businesses are on solid ground. Space X is indispensable to US strategic capabilities and there is no competitior that can  match its launch capacity, cost or technological edge in the next 3-4 years. Elon has the money to fight any lawsuits if SpaceX contracts are arbitrary cancelled by  impulsive Trump. If Elon goes ahead with his party plan, he will probably resign from Tesla or forced out by the board. Tesla is barely surviving and needed the zer0 emmission credits to stay profitable. Trump is certain to pull the rug.  Twitter X is profitable and will be important for his party messaging plan. 2 narcissists not backing down, we can only expect fireworks. 

 

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Musk is clearly super clever and successful... but with that comes caveats, same for all great inventors/artists/thinkers/boundry pushing types, and those caveats are often personal flaws, like ego/drunkeness/delusions of grandeur etc.

Musk, like many in the modern world, should stick to what they are good at and not fall into the trap of because you are good at one thing means you should be listened to on all topics. Another example of this is musicians that get political, people aren't interested in your politics, they like your music... so stand down, as most people find it irritating when someone who has no experience in something starts mouthing off or lectures everyone on something they are unqualified to do so. Yes, people on forums etc. give there opinion but that on a tiny scale, but these types use their platform they got for something else to spout off about something they know no more about than "Bob" down the pub. We don't ask nurses about soldiering or plumbers about gardening... we ask those who know about it. Muppets up their own backsides everywhere now.

Posted

He seems to have found an Achilles's heel on DT with this Epstein stuff.  DT can hit back with espionage.  It's kind of like watching a Japanese monster movie where the two beasts fight to the end.

 

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Posted
14 hours ago, Sir Dude said:

Musk is clearly super clever and successful... but with that comes caveats, same for all great inventors/artists/thinkers/boundry pushing types, and those caveats are often personal flaws, like ego/drunkeness/delusions of grandeur etc.

Musk, like many in the modern world, should stick to what they are good at and not fall into the trap of because you are good at one thing means you should be listened to on all topics. Another example of this is musicians that get political, people aren't interested in your politics, they like your music... so stand down, as most people find it irritating when someone who has no experience in something starts mouthing off or lectures everyone on something they are unqualified to do so. Yes, people on forums etc. give there opinion but that on a tiny scale, but these types use their platform they got for something else to spout off about something they know no more about than "Bob" down the pub. We don't ask nurses about soldiering or plumbers about gardening... we ask those who know about it. Muppets up their own backsides everywhere now.

Is he a functional autistic person?some of them are brilliant.

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