Summary of an article by Kliment Robev
In brief
Kliment Robev analyses how Elon Musk’s political role in the Trump administration is affecting his companies — from Tesla’s steep decline to the stronger positions of X and SpaceX.
Key points
- Musk juggles his companies while prioritising his role as Trump’s adviser. In two months he lost nearly a third of his fortune, and Tesla’s shares fell more than 50% from their record of $479 in December 2024.
- The reasons for Tesla’s troubles: Musk’s image (DOGE and his political interventions in Germany and the UK), the lack of new models and falling sales in China (−49% year on year in February), plus the effect of tariffs on Canada.
- AI projects are the right direction for Tesla, but they depend on Musk’s commitment, which looks increasingly doubtful.
- X has become the most valuable tool for his political ambitions, while SpaceX — strategically important to US defence, with more than $15 billion in NASA and Pentagon contracts over 10 years — remains stable.
- His dual role as businessman and key administration figure creates conflicts of interest. The question is not whether Musk will shape the future, but at what price.
Context
Published on 18 March 2025, at the height of DOGE’s work and of the longest losing streak in Tesla’s shares since the company went public.
Views reflect his position at the date of publication and are not investment advice. Regulatory information
