Elon Musk is struggling to balance his leadership at Tesla TSLA, SpaceX, X, and other companies while juggling his new role in the Department of Government Efficiency in President Donald Trump's administration. And while some investors are only now sounding the alarm, his father, Errol Musk, saw this coming back in November.
Errol Musk’s Warning
In an interview with Al Arabiya News last year, Errol expressed concerns about Elon taking on government duties, saying it would be a “big concern” if he had to step away from board meetings and company leadership.
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“Elon has a tremendous task on his hands,” Errol said. “He has a couple hundred thousand employees and a lot of very serious things going on in his life, so he has to be available for all that he started… [he] can't just walk away from things.”
At the time, Errol acknowledged that Elon was well-suited for improving efficiency in government but warned that his businesses needed his attention. “To have him sit in an office somewhere in Washington, waiting and twiddling his thumbs – no, no. He has to be called upon on a sort of consultancy basis.”
Fast forward to today, and it seems like his fears were justified.
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Tesla Stock Crashes as Musk Admits Struggles
Tesla's stock has been in free fall, plunging about 40% since Trump took office in January. Investors are growing worried, and high-profile voices, including Barstool Sports founder Dave Portnoy, are calling out Musk.
Portnoy recently took to X, asking, “How far does TSLA stock have to crash before Elon goes back to work?”
Musk himself admitted in a recent Fox Business interview that he is running his businesses “with great difficulty.” On Monday alone, Tesla's stock dropped 15%, wiping out $130 billion in market value, more than the combined worth of Ford F and General Motors GM.
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Political Fallout and Tesla's Declining Sales
Tesla is also losing ground to competitors. In Europe, for example, Tesla sales plummeted 45% in January, while the broader EV market grew. Other markets show similar drops, some even worse. Analysts point to Musk's political involvement as a factor, with a Morning Consult survey showing that 32% of U.S. consumers wouldn't consider buying a Tesla, up from 27% last year.
Protests against Tesla have emerged in both the U.S. and Europe, with demonstrators criticizing Musk's political ties and questioning whether he is too distracted to lead the company effectively.
Trump Defends Musk
Despite the backlash, Trump has publicly supported Musk, accusing “Radical Left Lunatics” of trying to harm Tesla. Trump even announced his intention to buy a Tesla as a show of support. Meanwhile, some analysts, including Dan Ives from Wedbush, believe this could be a buying opportunity for investors, expecting a potential rebound in the future.
Was Errol Right All Along?
When Errol spoke about his son's new government role last November, he made it clear that splitting Elon's time between business and politics could be risky. “I can’t think of anyone more suited to a role like this than Elon,” he said at the time. But he also stressed that Musk’s core strength was building and running companies, not sitting in government meetings.
With Tesla's stock in freefall, sales struggling, and investors growing restless, it seems Errol Musk’s warning wasn't just fatherly concern—it was a prediction that may now be playing out in real time.
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