Elon Musk Faces Financial and Political Backlash Amid Trump Administration Role

Elon Musk Tesla Stock Drop: How Politics is Costing the Billionaire CEO

Billionaire entrepreneur Elon Musk, CEO of Tesla and SpaceX, has revealed that his involvement in Donald Trump’s initiative to downsize the federal government has come at a heavy cost. Speaking at a town hall event in Wisconsin, Musk acknowledged the significant financial, personal, and professional toll it has taken on him.’

“It’s costing me a lot to be in this job,” Musk said, referencing the political backlash and its impact on Tesla stock, which has plunged 45% since December 17, 2024.

Elon Musk’s Financial Hit: A $100 Billion Wealth Decline

According to the Bloomberg Billionaires Index, Musk’s net worth has dropped by over $100 billion this year, falling from $430 billion to $330 billion.

Tesla’s stock initially surged following Trump’s election, but investor sentiment quickly shifted as Musk’s political involvement became more pronounced. Despite these losses, the CEO remains optimistic about Tesla’s future.

“Long term, I think Tesla stock’s going to do fine, so maybe it’s a buying opportunity,” he told the Wisconsin audience.

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Musk’s Political Move: Investing in Wisconsin Supreme Court Race

Musk’s visit to Wisconsin coincides with the upcoming state supreme court election on April 1, 2025. The election is critical as it could shift the ideological balance of the court, which currently holds a 4-3 liberal majority.

Musk has personally injected $14 million into the campaign of Brad Schimel, the Republican-backed candidate. He also handed out $1 million checks to two local voters and provided details on volunteer compensation for canvassing efforts.

Why Wisconsin Matters to Musk and the GOP

The outcome of the Wisconsin Supreme Court election could have national implications, particularly for:

• Redistricting: A ruling unfavorable to Republicans could lead to congressional map changes, jeopardizing the GOP’s control of the U.S. House of Representatives.
• Abortion Rights: The court could decide on key state-level abortion laws.

Currently, Republicans hold six out of eight congressional seats in Wisconsin. If the court mandates a new electoral map, the GOP may lose seats in the 2026 midterms.

Tesla’s Business Interest in Wisconsin

Beyond politics, Musk has a business incentive in Wisconsin. Tesla is pushing for an exemption to a state law that bans automakers from selling directly to consumers. The legal battle could ultimately land before the same court Musk is now working to reshape.

With his financial and political stakes high, Musk’s Tesla stock drop and political involvement continue to raise eyebrows among investors and policymakers alike.