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Tesla Shares decline after CEO Elon Musk revealed the challenges of juggling leadership duties of Tesla, SpaceX, xAI, and X and his involvement with DOGE.
Tesla Shares Fall: Elon Musk Cites DOGE and CEO Role Challenges
Tesla Share Price Fall: Tech billionaire and head of X (Twitter), Tesla, and SpaceX, Elon Musk, conceded for the first time that he is having ‘great difficulty’ managing all these ventures. His remarks came in an interview with Fox Business amid the slump of Tesla shares by 15 per cent, a leader in Nasdaq’s drop of 4 per cent on Monday.
Tesla saw the sharp fall on Monday, declining over 15 per cent. The share price came down to $222.15, down 41.43 per cent in 2023 on a Year-To-Date basis. Tesla shares reached their pinnacle at $436 apiece last year in December.
Meanwhile, Musk saw a deep dive in its net worth by dropping about $20 billion in a single day to come $320 billion, reflecting a fall of -6.66 per cent.
X suffered A Global Outage.
Billionaire tech mogul Elon Musk said that his social media platform X was hit by a “massive cyberattack” and claimed that the attack was traced back to Ukraine.
The platform encountered multiple outages on Monday, repeatedly going offline, recovering briefly, and crashing again. While some users struggled to load X posts, others faced issues accessing in-app services.
“We are not sure exactly what happened, but there was a massive cyberattack to try to bring down the X system with IP addresses originating in the Ukraine area,” Musk said in an interview with Fox Business Channel.
When questioned about the platform’s status, Musk responded, “It is up.”
Juggling Between DOGE and Companies
Reuters reports that Elon Musk’s association with Dogecoin is worrying investors who fear it might be affecting his other companies. As a prominent face of the DOGE (Department of Government Efficiency) , Musk’s involvement has raised concerns about his focus on other ventures.
Investors are particularly concerned about his leadership in the Department of Government Efficiency, which aims to cut government spending. They fear this responsibility might be distracting him from effectively managing Tesla, SpaceX, X, and xAI.
US Stock Market Crashed
US stock markets tumbled on Monday, with the S&P 500 plunging nearly 3% to its lowest point since September. The tech-heavy Nasdaq experienced an even steeper decline, plummeting 4% in its worst single-day performance since September 2022. The Dow Jones also faced a significant drop, briefly falling by 1,100 points.
The S&P 500 is now down 9% from its peak, nearing the 10% threshold often considered “correction territory.” The Nasdaq Composite has already fallen 14% from its recent high, while the Russell 2000, down 18%, is on the brink of a bear market, typically defined as a 20% decline from recent highs.
