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    Musk’s Tweet-Fueled Bubble May Be About to Burst

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    Elon Musk’s business empire may be starting to wobble.Over the past six weeks, the value of Tesla’s shares has plunged about 40 percent, wiping out virtually all they had gained after the 2024 election. This reversal reveals Mr. Musk’s soft underbelly: His fortune depends heavily on the inflated expectations of his rabid following. As those expectations deflate so will his power, demonstrating that financial markets are an underappreciated guardrail against both Mr. Musk’s and President Trump’s agendas.It is tempting to compare Mr. Musk to the true business titans of the past quarter century such as Apple’s Steve Jobs, Microsoft’s Bill Gates, Amazon’s Jeff Bezos, Meta’s Mark Zuckerberg, Nvidia’s Jensen Huang, and Google’s Larry Page and Sergey Brin. But those individuals created genuinely huge businesses that eclipse anything Mr. Musk has built by any possible metric. While Mr. Musk has built a car company from the ground up — no easy feat — his wealth is largely thanks to a financial cult, one in which legions of dazzled investor-followers have enabled him to launch an ever-growing list of disparate initiatives and provided immunity from critics who question his operational decision-making, his corporate governance, his obscene pay packages, and now his migration into the political sphere.The high-wire act goes something like this: Dream up a business so ambitious that any setback is trivial and every accomplishment heroic. Identify yourself as the manic genius behind this ambitious business in order to personally capitalize on outsize returns from excited investors. Enlist social media to cement your iconic status, keeping your believers so enthusiastic that their fervor beats back any skeptics who dare to bet against your ventures, even as you pitch more and more fantastical ideas. At this point you hit the flywheel: Other investors, searching for outsize returns, flock to the shares of your other companies, pushing their valuations ever higher, thus fortifying your wealth and burnishing your reputation as a business mastermind.If you’re lucky, this happens when investors are dreaming of alternatives to the poor returns available when interest rates are ridiculously low; magical thinking about the power of technology suppresses any worry about the risks of problems down the line; and retail markets are turning stock trading into something more akin to online gambling.Understanding this cult requires one to rethink what one knows about finance. Financial purists like to think of financial markets as neutral arbiters that merely record the value-creating activities of entrepreneurs. Financial pragmatists understand that prices need not always reflect value, as behavioral finance has demonstrated. But what if entrepreneurs can capitalize on these dynamics to manufacture fortunes and political power?This trick is precisely what Mr. Musk has mastered. His messianic status, which was birthed in the explosion of social media, created a powerful cycle of outsize returns on ventures that lead to investors providing him with more and cheaper capital to diversify his empire that, in turn, attracts yet more investors fearful of missing out. Skyrocketing Tesla shares have made fans and investors so devoted that all he has to do is mention a new ambition to goad them into buying even more. And the larger the stated ambition, the more wealth and power they hand him. So why not try for Mars? The final step in this process is to consolidate power in the political sphere to ensure that the outsize ambitions can be nourished forever. If Mr. Musk had played it well, his empire may have been impregnable.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Rage Against Elon Musk Turns Tesla Into a Target

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      Tesla charging stations were set ablaze near Boston on Monday. Shots were fired at a Tesla dealership in Oregon after midnight on Thursday. Arrests were made at a nonviolent protest at a Tesla dealership in Lower Manhattan on Saturday.The electric car company Tesla increasingly found itself in police blotters across the country this week, more than seven weeks after President Trump’s second inauguration swept Tesla’s chief executive, Elon Musk, into the administration as a senior adviser to the president.Mr. Musk, 53, is drawing increasing backlash for his sweeping cuts to federal agencies, a result of the newly formed cost-cutting initiative Mr. Musk has labeled the Department of Government Efficiency.During a demonstration on Saturday at a gleaming Tesla showroom in the West Village neighborhood of Manhattan, protesters joined in chants of “Nobody voted for Elon Musk” and “Oligarchs out, democracy in.” One held a sign saying, “Send Musk to Mars Now!!” (Mr. Musk also owns SpaceX.)Shots were fired at the Tesla dealership in Tigard, Ore., this week.Tigard Police DepartmentSeveral hundred protesters remained there for two hours, organizers said, blocking entrances and shutting down the dealership.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Officials Are Fired at Traffic Safety Agency Investigating Musk’s Company

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      The National Highway Traffic Safety Administration has raised questions about crashes involving Tesla’s self-driving technology.The federal agency responsible for traffic safety, which has been investigating whether self-driving technology in Tesla vehicles played a role in the death of a pedestrian, will fire a “modest” number of employees, an agency spokesman said late Friday.The agency did not say whether any of the fired employees were involved in investigations of Tesla, whose chief executive, Elon Musk, is leading the Department of Government Efficiency established by President Trump.The efficiency department has been forcing layoffs at numerous government agencies as part of an effort to reshape the federal bureaucracy. Mr. Musk has retained control of Tesla while spending much of his time in Washington.The National Highway Traffic Safety Administration has three active investigations of Tesla, according to agency documents, including one examining whether the company’s autonomous driving software is prone to failure when visibility is poor.The layoffs at the traffic safety agency, which has less than 1,000 employees, were reported earlier by The Washington Post. Even after the layoffs, the agency continues to employ more people than at the beginning of the Biden administration, the agency said in a statement.“The last administration grew NHTSA by a whopping 30 percent,” the agency said in a statement.“We have retained positions critical to the mission of saving lives, preventing injuries, and reducing economic costs due to road traffic crashes,” the agency said. “We will continue to enforce the law on all manufacturers of motor vehicles and equipment.”Tesla did not respond to a request for comment.One of the traffic safety agency’s investigations into Tesla is based on four accidents involving technology that the carmaker calls supervised full self-driving.James Stukenberg for The New York TimesOne of the investigations into Tesla is based on four accidents involving technology that the carmaker calls supervised full self-driving, which can steer, brake and navigate Tesla cars in some situations. In one of the crashes, a Tesla struck and killed a pedestrian, according to agency documents. In another of the accidents, a person was injured.Tesla’s self-driving technology relies on cameras to survey a car’s surroundings, in contrast with competitors like Waymo, a unit of the same company as Google, that also uses lasers and radar to recognize objects.The traffic safety agency has been looking into whether Tesla’s technology failed when visibility was poor because of glare from the sun, fog or dust.Mr. Musk has often argued that Tesla self-driving technology is safer than human drivers.The technology is also crucial to Tesla’s future and share price. As Tesla sales have flagged, falling 1 percent last year even as the global market for electric vehicles rose 25 percent, Mr. Musk has shifted the company’s focus to autonomous driving technology and plans for a self-driving taxi.The technology will help make Tesla the most valuable company in the world by far, Mr. Musk told investors last month. More

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      Elon Musk Is Focused on DOGE. What About Tesla?

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      Mr. Musk, one of President Trump’s main advisers, has not outlined a plan to reverse falling sales at the electric car company of which he is chief executive.Elon Musk’s role as President Trump’s cost-cutting czar and his immersion in right-wing politics appears to be diverting his attention from Tesla at a perilous moment for the electric car company.Tesla’s car sales fell 1 percent last year even as the global market for electric vehicles grew 25 percent. Mr. Musk has not addressed that underperformance, and he has offered no concrete plan to revive sales. He has also provided no details about a more affordable model Tesla says it will start producing this year. In the past, Mr. Musk spent months or years promoting vehicles before they appeared in showrooms.And he has spent much of his time since the election in Washington and at Mr. Trump’s home in Florida — far from Austin, Texas, where Tesla has its corporate headquarters and a factory, or the San Francisco Bay Area, where it has a factory and engineering offices.In the past decade or so, Tesla went from a struggling start-up to upending the global auto industry. The company sold millions of electric cars and generated huge profits, forcing established automakers to invest billions of dollars to catch up. Tesla’s success has been reflected in its soaring stock price, which helped make Mr. Musk the world’s richest person.But now, he seems to have lost interest in the grinding business of developing, producing and selling cars, investors and analysts say. That could have serious ramifications for his company and the auto industry, which employs millions of people worldwide.Even before he joined the Trump administration as the head of the Department of Government Efficiency, Mr. Musk’s running multiple companies had led investors and corporate governance experts to wonder whether he was spread too thin. Besides Tesla, Mr. Musk controls and runs SpaceX, whose rockets carry astronauts and satellites for NASA and others; X, the social media site; and xAI, which is developing artificial intelligence. And he wants to colonize Mars.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Nikola, Electric Truck Maker, Files for Bankruptcy

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      The company, which once enjoyed a surging stock price, struggled to turn its plans for electric and hydrogen trucks into a viable business.Nikola, an electric vehicle start-up that had once hoped to become the Tesla of heavy trucks, filed for bankruptcy protection on Wednesday.Founded in 2015, Nikola promised to develop long-haul semi trucks powered by hydrogen and electricity, and listed itself on the stock exchange in 2020 before it had sold a single vehicle. Its share price surged briefly as individual investors and some Wall Street firms clamored to bet on companies that they thought could replicate Tesla’s success and its soaring stock price.Investors’ short-lived enthusiasm for Nikola made its founder, Trevor Milton, and other early investors wealthy. But before long, significant doubts emerged about Mr. Milton’s claims about the company’s technology and orders from customers. He was soon ousted, and later convicted on fraud charges.In recent quarters, Nikola had begun delivering small numbers of electric trucks but far too few to make money. Late last year, the company said it had $200 million in cash and $270 million in long-term debt. Its stock plunged in early February on reports that the company was nearing a bankruptcy filing.The company said in a release it had about $47 million in cash on hand, and intended to continue “limited” service and support for trucks out on the road. The bankruptcy filing listed liabilities of between $1 billion and $10 billion, and put the number of creditors it owes at between 1,000 and 5,000.Nikola is one of several fledgling electric vehicle companies that have struggled to turn their ideas into actual cars and trucks.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      California’s Push for Electric Trucks Sputters Under Trump

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      The state will no longer require some truckers to shift away from diesel semis but hopes that subsidies can keep dreams of pollution-free big rigs alive.President Trump’s policies could threaten many big green energy projects in the coming years, but his election has already dealt a big blow to an ambitious California effort to replace thousands of diesel-fueled trucks with battery-powered semis.The California plan, which has been closely watched by other states and countries, was meant to take a big leap forward last year, with a requirement that some of the more than 30,000 trucks that move cargo in and out of ports start using semis that don’t emit carbon dioxide.But after Mr. Trump was elected, California regulators withdrew their plan, which required a federal waiver that the new administration, which is closely aligned with the oil industry, would most likely have rejected. That leaves the state unable to force trucking businesses to clean up their fleets. It was a big setback for the state, which has long been allowed to have tailpipe emission rules that are stricter than federal standards because of California’s infamous smog.Some transportation experts said that even before Mr. Trump’s election, California’s effort had problems. The batteries that power electric trucks are too expensive. They take too long to charge. And there aren’t enough places to plug the trucks in.“It was excessively ambitious,” said Daniel Sperling, a professor at the University of California, Davis, who specializes in sustainable transportation, referring to the program that made truckers buy green rigs.California officials insist that their effort is not doomed and say they will keep it alive with other rules and by providing truckers incentives to go electric.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      State Department Revises Plan to Buy Armored Teslas

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      Tesla’s name was removed from a State Department document that listed planned vehicle purchases after the existence of the list was reported late Wednesday. The potential award raised questions about why the government was giving a lucrative contract to the company, which is led by Elon Musk, one of President Trump’s most important advisers.A department procurement forecast for 2025 detailed purchases the agency expected to make, including $400 million for armored Tesla vehicles. The document did not specify which Tesla model, but the electric Cybertruck, which has a body of high-strength stainless steel, would be the most suitable.Later on Wednesday, a different version of the procurement document appeared online. It referred to “armored electric vehicles,” omitting any mention of Tesla.Mr. Musk spent more than $250 million to help elect Mr. Trump, who then appointed him as the leader of a cost-cutting initiative that’s been called the Department of Government Efficiency, or DOGE.Plans to spend $400 million on Tesla pickups raised eyebrows given that Mr. Musk has been posting almost hourly on X, the social media site he owns, about wasteful government spending.Tesla and the State Department did not respond to requests for comment. On X, Mr. Musk shared a post from a supporter that said a report on the topic by Rachel Maddow of MSNBC was a “hit piece.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Administration Move to Freeze E.V. Charger Funding Confounds States

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      A new federal order that freezes a Biden-era program to build a national network of electric vehicle charging stations has confounded states, which had been allocated billions of dollars by Congress for the program.In interviews on Friday, some state officials said that as a result of the memo from the Trump administration, they had stopped work on the charging stations. Others said they intended to keep going.In Ohio, where Gov. Mike DeWine, a Republican, has welcomed federal money to build 19 E.V. charging stations, Breanna Badanes, a spokeswoman for the state’s Transportation Department, said Friday that “it’s safe to say we’re not sure” how or whether the state will build more.“Those stations will continue operating, but as far as what comes next, we’re in the same boat with everyone else, just trying to figure it out,” she said.The Feb. 6 memo signed by Emily Biondi, an associate administrator at the U.S. Transportation Department, said that the administration was “suspending approval of state electric vehicle infrastructure deployment plans.” The memo singled out the National Electric Vehicle Infrastructure, or NEVI, program, which was authorized under the 2021 bipartisan infrastructure law.A national network of fast charging stations was part of President Joseph R. Biden’s Jr.’s effort to combat climate change by accelerating the nation’s transition to electric vehicles.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      U.S. Will Allow California to Ban New Gas-Powered Cars, Officials Say

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      California and 11 other states want to halt the sale of new gas-powered cars by 2035. President-elect Donald Trump is expected to try to stop them.The Biden administration is expected in the coming days to grant California and 11 other states permission to ban the sale of new gasoline-powered cars by 2035, one of the most ambitious climate policies in the United States and beyond, according to three people briefed on the matter, who spoke on the condition of anonymity because they were not authorized to discuss it publicly.President-elect Donald J. Trump is expected to revoke permission soon after taking office, part of his pledge to scrap Biden-era climate policies. “California has imposed the most ridiculous car regulations anywhere in the world, with mandates to move to all electric cars,” Mr. Trump has said. “I will terminate that.”The state is expected to fight any revocation, setting up a consequential legal battle with the new administration.“California has long led the nation in pioneering climate policies and innovation,” said Gov. Gavin Newsom, a Democrat, earlier this year. “Those efforts will continue for years to come.”He has described the ban as the beginning of the end for the internal combustion engine.Under the 1970 Clean Air Act, the Environmental Protection Agency has for decades allowed California, which has historically had the most polluted air in the nation, to enact tougher clean air standards than those set by the federal government. Federal law also allows other states under certain circumstances to adopt California’s standards as their own.The waiver can be used to rein in toxic, smog-causing pollutants like soot, nitrogen dioxide and ozone that lead to asthma and lung disease. But California officials have also been using the waiver to curb greenhouse gases like carbon dioxide, a chief cause of global warming. Gas-powered cars and other forms of transportation are the biggest source of carbon dioxide generated by the United States.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More