Elon Musk’s father warned in November that it could be “a big problem” if Elon had to leave his company to perform government duties
Elon Musk Working to balance his leadership at Tesla (NASDAQ:TSLA), SpaceX, X and other companies while jugging his new role in the Presidential Government Efficiency Department Donald Trump’s administrative. Although some investors only give the alarm now, his father, Error Musksee this back in November.
Last year, Errol said in an interview with Al Arabiya News that he was worried about Elon taking on government responsibilities and said it would be a “big problem” if he had to leave the board meeting and company leadership.
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“Eron has a huge task in his hands,” Errol said. “He has hundreds of thousands of employees and many very serious things in his life, so he has to fit everything he started… [he] You can’t just leave things. ”
At the time, Errol admitted that Elon was well suited to improve government efficiency, but warned that his business needed his attention. “Let him sit in an office somewhere in Washington, waiting to twist his thumb – no, no. He must be asked on some kind of consultation.”
Fast forward to today and it seems his fear is justified.
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Tesla’s stock has fallen by about 40% since Trump took office in January. Investors are increasingly worried that high-profile voices including Barstool Sports founder Dave Portnoy are calling out Musk.
Portnoy recently went to X and asked, “How far must TSLA stocks collapse before Elon returns to work?”
Musk himself admitted in a recent Fox Business interview that he was “very difficult” to run his own business. On Monday alone, Tesla’s stock fell 15%, consuming $130 billion in market value, exceeding the total value of value Ford (NYSE:F) and General Motors (NYSE:GM).
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Tesla also lost reasons for its competitors. In Europe, for example, Tesla’s sales fell 45% in January, while the broader electric vehicle market grew. Other markets showed similar declines, and some were even worse. Analysts point out that Musk’s political participation is a factor, with a morning consulting survey showing that 32% of U.S. consumers would not consider buying Tesla, compared with 27% last year’s higher than 27% last year.
Protests against Tesla emerged in both the United States and Europe, with protesters criticizing Musk’s political ties and questioning whether he was too distracted to lead the company effectively.
Despite strong opposition, Trump publicly supported Musk, accusing the “radical left madman” of trying to hurt Tesla. Trump even announced his intention to buy Tesla as support. Meanwhile, some analysts, including Dan Ives Starting with Wedbush, I believe this may be a buying opportunity for investors, and expect a potential rebound in the future.
See: Elon Musk tells the UN whether they can show plans to end world hunger
When Errol talked about his son’s new government post in November, he made it clear that Elon’s time between business and politics could take risks. He said at the time: “I can’t think of someone who is more suitable for such a role than Elon.” But he also emphasized that Musk’s core strength is to build and run a company, not sit in government meetings.
Tesla’s warning appears to be more than just the father’s attention amid free fall, sales struggles and uneasy investors’ growth — a prediction that may be working in real time now.
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