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Elon Musk’s Worst Day Yet? Tesla’s Stock Is in Freefall

Hey there, welcome back! Today, we’ve got a lot to discuss about Elon Musk and what might be one of his worst days yet. Tesla’s stock is in freefall, and you’re witnessing it live—the biggest destruction of wealth in history, with Musk at the center of it.

Right now, Tesla is down about 23% for the month and is dropping another 7-9% today alone. Will it fall below $300? It already touched $299 earlier, and it seems to be heading lower. The reality is Tesla’s stock has been vastly overvalued, and today’s news confirmed it—sales in Europe have plunged by 45%. The crash continues, and the question is: Could Tesla stock eventually hit zero?

Musk’s Desperation Is Showing

As Tesla’s stock keeps sinking, you can almost picture Musk reacting—desperate and scrambling. And here’s where things take a turn: He seemed to anticipate this decline, shifting his focus toward politics as a backup plan. His goal? Secure government subsidies, push for tariffs, and ultimately redirect tax dollars to keep his ventures afloat. His strategy? Aligning with Trump, who has suggested various ways to restructure the system in Musk’s favor.

Elon’s latest move is laughably petty. Picture a third-grader passing a note in class: “Do you like me? Check yes or no.” That’s essentially what he did with his email to federal employees, demanding a response—or else. First, he threatened termination for non-responses. Now, he’s generously offering a “second chance” before following through on those firings.

Trump, backing him up, hinted at concerns over ghost employees, suggesting that maybe even “dead people” are still on payroll. Meanwhile, Musk’s supporters—like Matt Walsh—are calling for mass firings of anyone who doesn’t enthusiastically comply with his demands. The expectation is that employees should be grateful just to receive an email from Musk himself. The reaction? Mostly skepticism, jokes, and pushback.

Tesla Sales Fall 45% in Europe

Yes, Tesla's sales in Europe have been facing a significant decline. Reports indicate that Tesla’s sales in Europe dropped by 45%, which has been a major contributing factor to the stock's decline. This fall in sales is part of a broader trend, with increasing competition in the electric vehicle (EV) market and shifting market dynamics. Tesla’s once dominant position in Europe is facing challenges as other automakers ramp up their EV production and governments tighten regulations. This shift is adding to the pressure Musk is already facing with Tesla’s stock and financial situation.

The Truth About Musk’s Wealth

Beyond all this, Tesla’s decline exposes the real foundation of Musk’s wealth. He doesn’t take a salary—so no income tax. Instead, he holds massive amounts of Tesla stock, using it as collateral to secure loans and fund his ventures. That’s how he was able to buy Twitter (now X), a deal that turned into a financial disaster. Banks took heavy losses on it, and reports have called it one of the worst deals since the financial crisis.

So here we are: Tesla’s stock is cratering, Musk’s influence is being tested, and his political maneuvering is becoming more transparent. The big question remains—how much further will this go?

We don’t know exactly who’s buying in, as reports have been conflicting. What we do know, however, is that foreign money is involved in Twitter—Saudi investments, Russian capital, and even some from Diddy. Yes, that Diddy.

The Cybertruck, Robotaxis, and the Musk Fantasy Machine

Meanwhile, Elon Musk is actively trying to raise more money to keep Twitter afloat, which is interesting because many of his supporters believe he’s wealthy enough to buy entire countries. Some even claim he’s worth more than entire nations like Russia or Spain—an idea that has been floating around in past discussions. But here’s the reality: If you don’t understand how Musk’s wealth works, you might fall for these illusions.

Musk and Trump operate similarly—they inflate their worth, exaggerate their power, and shift narratives to benefit themselves. When Musk was brought into government discussions, it was unclear whether he was officially a federal employee. Eventually, it was stated that he was classified as an advisor, possibly even an employee of the White House, though his role has been deliberately vague. Why? Likely to avoid financial disclosure requirements and lawsuits—yet another layer of shadiness in his dealings.

The key question: How much actual cash does Musk have on hand? If Tesla’s stock keeps crashing—and it looks like it will—he could be in serious financial trouble. He has leveraged his wealth through credit lines backed by Tesla stock, meaning if the value tanks, margin calls could force him to come up with cash fast. That’s why you’re seeing these desperate moves to prop everything up.

Adding to his troubles, Tesla has lost much of its top talent. Many insiders saw the writing on the wall, cashed out their stock, and left the company. Musk, now more isolated, even took charge of designing the Cybertruck—an unmitigated disaster. Now, he’s hyping up "robotaxis" and "humanoid robots," selling the idea that they'll replace human labor. But let’s be real—these robots don’t work well, won’t come at a cost-effective price, and aren’t solving any real-world problems.

Tesla fanboys, who often lack technical or business knowledge, continue to hype up the company, but the numbers don’t lie. Take the so-called humanoid robots: If one costs $100,000 (or more), why would any company invest in that when they can hire workers in places like Vietnam or China for a fraction of the cost? It’s just another Musk fantasy. The same applies to robotaxis—he wants you to believe they’ll replace Uber and be cheaper than public transit, but the logistics make no sense.

On top of all this, Musk’s global political involvement is turning people away from his brand. Tesla sales are plummeting, the stock is cratering, and we’re witnessing the largest wealth destruction in history. It’s fascinating to watch because it exposes just how long hype and speculation can sustain a financial bubble.

Technical Analysis

So, where does that leave us now? Tesla’s price has reached an interesting level. We’ve been watching this and I’ve been saying for a while now that $280 per share would be a key level to watch, and we briefly dipped into the 280s today, even though we closed above $290. This is an important level for a few reasons. I’m not saying the bottom is here yet, but we’re getting closer to a point where we could see a potential reversal or at least a stabilization.

When looking at the daily chart, we’re way below the Bollinger Bands, with the price hugging the lower end. This is something we’ve seen with other big stocks like Amazon, where hitting the lower band can signal the possibility of a reversal or at least a slowdown in the downtrend. That’s something to keep in mind.

We’re also in a descending channel, and while the trend is still downward, we’re nearing the bottom end of that channel. If there’s any chance of a reversal, it would likely happen around here, but it’s still too early to call the bottom for sure.

In terms of support, we’re nearing a crucial level—around $290 to $270. This area has been a strong resistance zone in the past, and now that we’re approaching it again, it could act as a solid support level. But of course, things could still get worse. We might see further declines, and there’s a chance we could dip into the low $270s, even the $260s.

The Tesla-Bitcoin Bubble Is Popping

Interestingly, Tesla and Bitcoin emerged around the same time, right after the financial crisis, and both are now struggling. Which is more overvalued—Tesla stock or Bitcoin? It’s debatable. But both operate on the "greater fool theory"—people buy in, hoping to sell to an even bigger fool at a higher price. The problem is, when confidence fades, the whole thing collapses fast.

And that’s exactly what we’re seeing today—the collapse of Tesla sales, the decline of Musk’s empire, and his frantic attempts to maintain control. He’s even giving people a “second chance” to respond to his infamous email ultimatum, but at this point, it’s just turning into a full-blown circus.

This is financial history in the making, and we’re watching it unfold in real-time. Stay tuned—things are only going to get more interesting.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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