Elon Musk has experienced a tumultuous day, marked by significant setbacks for both his political and business endeavors. On Tuesday night, Musk's favored conservative candidate suffered a defeat in the Wisconsin Supreme Court election, despite the billionaire and his super PAC investing a staggering $15.5 million into the race. This loss was compounded by disappointing news on Wednesday morning when Tesla reported that its first-quarter deliveries fell significantly short of analysts' expectations. As a result, shares of Tesla have plummeted nearly 30% this year.
Musk's political misfortunes are particularly striking given his recent high-profile support for the White House DOGE office. Despite his enthusiasm, recent polling indicates a steep decline in his popularity, even among Republicans, where he is reportedly less favored than former President Donald Trump. This situation raises questions about the effectiveness of Musk's political investments and his influence within the Republican Party.
In Wisconsin, Musk's involvement in the Supreme Court race drew criticism from Democrats, who hammered him throughout the campaign. Demonstrating his commitment, Musk visited the state, donning a Cheesehead hat in Green Bay and engaging with supporters while distributing millions in giveaways. Initially, he claimed that $1 million checks were intended for voters; however, he later clarified that they were designed for select Wisconsinites chosen by his political organization to act as spokespeople.
The challenges facing Tesla are increasingly evident. The recent delivery numbers revealed a concerning 13% decline in deliveries compared to the previous year, further confirming fears that Musk's unpopularity could be negatively impacting his flagship company. Notably, Wedbush analyst Dan Ives, a well-known Tesla supporter, remarked that the first quarter was even worse than anticipated, stating, "The time has come for Musk ... it's a fork in the road moment."
Despite these setbacks, Musk has shown resilience. He has previously navigated crises, including multiple claims of Tesla being on the brink of bankruptcy during the Model 3 ramp-up. After briefly losing his title as the world's richest person in early 2024, Musk reclaimed it following the presidential election, leading to a significant increase in his wealth. So far, he has not indicated a willingness to change his trajectory, continuing to advocate for strict actions against individuals he labels as domestic terrorists targeting Tesla dealerships.
Amidst these challenges, Musk's proximity to Trump has led to controversies affecting Tesla. Protests against the automaker have erupted globally, with some protests turning violent, including an incident involving a firebombing of a Tesla dealership. Musk's political affiliations and activities have drawn scrutiny, leading many to wonder if he will adjust his approach as the pressures mount.
Before the polls closed in Wisconsin, Musk took to X Space, declaring that the Supreme Court election was pivotal for the "future of the world and maybe even Western civilization." He expressed a belief that the race could be decided by a remarkably close margin, indicating his commitment to the electoral process. However, Judge Brad Schimel, the candidate endorsed by Musk, appears set to lose by a significant margin of approximately 10 percentage points.
In conclusion, Elon Musk's recent experiences highlight the complex interplay between his political ambitions and the performance of Tesla. As he navigates these challenges, the coming weeks will be crucial in determining the trajectory of both his political influence and the future of his companies.
