Tesla’s TSLA stock has been declining, continuing its recent trend despite a slight rebound earlier this week. Even U.S. President Donald Trump’s purchase hasn’t significantly boosted the electric vehicle leader. After significant growth in late 2024 and early 2025, TSLA has lost its momentum amid reports of declining sales and shifting consumer sentiment.
CEO Elon Musk’s preoccupation with his responsibilities at the Department of Government Efficiency is affecting Tesla’s manufacturing operations as share prices trend downward. Musk’s intertwined business empire, including SpaceX and X (formerly Twitter), is under scrutiny as Tesla’s poor performance coincides with setbacks in his other ventures, such as a SpaceX rocket explosion and a cyberattack on X.
Musk has suffered significant financial losses as TSLA stock declines. Attorney Tristan Snell highlighted that if Tesla stock continues to fall, banks/creditors could potentially repossess X due to Musk initially using his TSLA stock holdings as collateral for the acquisition. However, U.S. national security lawyer Irina Tsukerman noted that Musk restructured the deal, replacing the margin loan with more equity financing and personal cash, untethering Tesla stock as direct collateral.
Despite this, Tesla’s stock price remains deeply entangled with Musk’s ability to maintain control over X. A further decline in Tesla stock could weaken Musk’s capacity to sustain X, making creditor action more likely. Financial instability caused by Tesla’s declines could force Musk to give up control of X through asset sales, investor pressure, or creditor action.
As long as TSLA continues to fall, Musk’s risks will intensify, and investor confidence in him will diminish. — news from TheStreet