Even the world’s richest man, Elon Musk, is not immune to setbacks. On Monday, he encountered a series of challenges, including a major crash of his social media platform X, a massive decline in Tesla’s stock value, and legal troubles, while an awkward television interview added further scrutiny.
Key Events
X Faces Widespread Outages
March 10, 8:54 a.m. EDT – Users began reporting major disruptions on Musk’s social media platform, X. Musk later attributed the crash to a “massive cyberattack” from a “large, coordinated group and/or a country”, citing IP addresses originating in Ukraine. However, cybersecurity expert Cliff Steinhauer told Forbes that it was likely too early to determine the true source of the attack.
Musk Sparks Controversy with ‘Traitor’ Comment
March 10, 9:42 a.m. – Musk drew criticism after calling retired astronaut and Senator Mark Kelly (D-Ariz.) a “traitor” in response to Kelly’s public support for Ukraine following his visit there. His remarks were condemned by multiple politicians, including Kelly’s wife, Gabby Giffords, and Republican Rep. Don Bacon (R-Neb.), who said Musk’s accusation was “not right” and “reflects poorly on the White House.” Despite the backlash, Musk’s comment received only 15,000 likes on X by Tuesday morning, while Kelly’s response gained over 230,000 likes.
Media Matters Sues X
March 10, 3:45 p.m. – Media Matters, a left-leaning watchdog group and longtime critic of Musk, sued X for allegedly engaging in a “vendetta-driven campaign of libel tourism” by filing lawsuits against the organization in foreign countries.
Tesla Suffers Its Worst Loss Since 2023
March 10, 4:00 p.m. – Tesla stock plummeted more than 15%, marking its worst daily loss since September. The electric vehicle giant was the biggest loser amid Wall Street’s decline, fueled by investor uncertainty following former President Donald Trump’s new tariffs. Tesla stock fell more than 50% in under three months, erasing a once 90% rally and dropping more than 10% below pre-Trump election levels.
Musk’s Halting Interview Raises Concerns
March 10, 4:30 p.m. – In an interview with Fox Business’ “Kudlow”, Musk struggled to reassure Tesla investors. Speaking in a halting manner, which quickly went viral on social media, he admitted that juggling his role at the Department of Government Efficiency alongside Tesla and other ventures was “very difficult”. Adding to the bizarre moment, he invoked Monty Python, saying, “Always look on the bright side of life.”
Musk Addresses Tesla’s Stock Drop
March 10, 4:56 p.m. – Musk responded to a thread pointing out that Monday was Tesla stock’s seventh-worst day in its 15-year history, stating, “It will be fine long-term.”
Federal Judge Rules Against Musk’s Agency
March 10, 10:13 p.m. – A federal judge ruled that the Department of Government Efficiency (DOGE) was operating with “unprecedented power” and “unusual secrecy.” The ruling ordered Musk’s agency to increase transparency and comply with public record requests.
Musk Pushes Back on Criticism
March 10, 10:18 p.m. – Musk reacted to criticism, responding to a post suggesting he would be “blamed for everything”, including an “incoming recession,” by saying, “The antibody reaction is strong.”
Trump Expresses Support for Musk
March 11, 12:14 a.m. – Former President Donald Trump voiced support for Musk, announcing on his Truth Social platform that he would buy a Tesla as a “show of confidence” in Musk, whom he called “a truly great American.”
Wall Street Analyst Calls Out Musk
March 11, 8:22 a.m. – Dan Ives, a Wedbush analyst and longtime Tesla supporter, released a scathing critique of Musk, stating that investor patience is wearing thin. He added that Musk “needs to step up as Tesla CEO at this critical juncture”, pointing out that Musk has had “little to no presence” at Tesla facilities since Trump took office.
Big Number
$22.8 billion – That’s how much Musk lost in a single day due to Tesla’s stock nosedive, according to Forbes. This loss exceeds the entire $22.7 billion fortune of media mogul Rupert Murdoch.
Forbes Valuation
Despite Monday’s setbacks, Musk remains the world’s wealthiest person with a net worth of $325 billion, maintaining a $110 billion lead over Amazon founder Jeff Bezos ($215 billion).
Crucial Quote
Dan Ives on Tesla’s struggles:
“The Musk DOGE distractions have created a black cloud over Tesla’s stock.”
Tesla Stock Bounces Back Slightly
By Tuesday morning, Tesla shares rebounded 6% from their lowest close since October before settling at a modest 1% gain by 11 a.m. EDT. However, Tesla remains the worst-performing company in the S&P 500, with a staggering 45% year-to-date decline, according to FactSet data.
Conclusion
Musk’s tumultuous start to the week highlights the growing pressures on Tesla, his government role, and his social media empire. As Tesla faces mounting investor concerns, Musk’s leadership and ability to balance his many ventures remain under intense scrutiny.
