Musk’s Father Warned in November for Elon to Leave His Companies for Politics, It Could Be ‘A Costly Mistake’

Tesla (TSLA) is facing its worst stock collapse in years as CEO Elon Musk’s political pivot draws sharp criticism from investors, analysts, and even his own family. Since January, Tesla’s stock has plummeted nearly 40%, wiping out over $130 billion in market value. Investors are sounding alarms over Musk’s divided focus, and some are demanding immediate action.

At the center of this turmoil is Elon Musk’s new role in the U.S. government under President Donald Trump’s administration, a move that many believe is distracting him from his leadership responsibilities at Tesla, SpaceX, and his other ventures. Adding to the drama, Musk’s father, Errol Musk, issued a public warning back in November 2024, cautioning that his son’s shift toward government service could be a “costly mistake.”

A Warning From Within the Musk Family

In November 2024, during an interview with Al Arabiya News, Errol Musk voiced serious concerns about Elon Musk’s future. He stated unequivocally that Elon’s companies demanded his full attention and that stepping away to take on government duties would have dangerous consequences.

“Elon has a tremendous task on his hands. He has a couple hundred thousand employees and a lot of very serious things going on in his life, so he has to be available for all that he started. He can’t just walk away from things,” Errol Musk said.

Errol Musk acknowledged that his son might have the ability to improve efficiency within government, but emphasized that Elon’s unique talent lies in building and running innovative companies—not attending bureaucratic meetings.

“To have him sit in an office somewhere in Washington, waiting and twiddling his thumbs—no, no. He has to be called upon on a sort of consultancy basis,” Errol added.

At the time, Errol Musk was one of the few voices raising concerns. Today, his warning seems prophetic as Tesla’s fortunes unravel.

Tesla’s Stock Collapse: Investors React to Musk’s Divided Focus

Since Donald Trump took office in January 2025, Tesla’s stock has nosedived, losing nearly 40% of its value. On Monday alone, the stock plunged 15%, erasing $130 billion in market capitalization—more than the combined worth of Ford and General Motors.

This dramatic fall has led to growing frustration among investors. Dave Portnoy, founder of Barstool Sports, publicly questioned Musk’s commitment on X (formerly Twitter), asking how low Tesla’s stock would have to fall before Musk “goes back to work.”

In a recent Fox Business interview, Elon Musk himself admitted that he is running his businesses “with great difficulty.” However, investors are beginning to wonder whether “difficulty” might be an understatement given the scale of Tesla’s decline.

Consumer Confidence in Tesla Is Crumbling

Beyond Wall Street, Tesla’s brand image is also taking a hit. In Europe, Tesla sales dropped 45% in January, even as the overall EV market continued to grow. In the U.S., a Morning Consult survey found that 32% of Americans now say they would not consider buying a Tesla vehicle—up from 27% last year.

Protests have erupted in both the U.S. and Europe, with critics accusing Musk of being too distracted by politics to effectively manage Tesla. This backlash is directly linked to Musk’s new government role, with many consumers citing his political involvement as a key reason for avoiding the brand.

Trump Defends Musk, Blames “Radical Left Lunatics”

Amid mounting criticism, President Donald Trump has come to Musk’s defense, claiming that “Radical Left Lunatics” are to blame for Tesla’s troubles. In a public show of support, Trump announced plans to buy a Tesla himself, though analysts remain skeptical about the impact this endorsement will have.

Meanwhile, Dan Ives, managing director at Wedbush Securities, suggested the situation might present a buying opportunity, but only if Musk can refocus on running his companies.

“The reality is this: Musk’s unique leadership is Tesla’s greatest asset. But he needs to be laser-focused on his core businesses if Tesla is going to recover from this nosedive,” Ives said in a client note.

Will Musk Step Away from Politics?

When Errol Musk issued his warning last year, he made one thing clear: Elon Musk is best suited to building and running companies, not working in politics.

“I can’t think of anyone more suited to a role like this than Elon,” Errol said in November 2024. “But he has to focus on his businesses.”

Now, with Tesla’s stock in freefall, sales plummeting, and protests mounting, Errol’s concerns have proven prescient. The question that remains is whether Elon Musk will heed his father’s advice and step back from politics to reclaim control of his companies—or whether Tesla will continue to suffer as its CEO juggles competing priorities.

The Bottom Line

Tesla is in crisis. Investors are losing patience. Consumers are turning away. And Elon Musk, once hailed as a visionary leader, now faces a critical choice: focus on Washington politics, or return his attention to the companies that made him one of the world’s most influential figures.

For now, the market verdict is clear—Tesla needs Musk back at the helm.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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