Tesla shares jumped nearly 7% on Tuesday after CEO Elon Musk emphasized over the weekend his intention to concentrate fully on his businesses, particularly Tesla, xAI, and the social platform X, as SpaceX prepares for its latest Starship rocket launch.
Musk Addresses Operational Issues on X
Musk took to X to acknowledge recent uptime problems on the platform, stating the need for “major operational improvements.” He committed to dedicating himself “24/7” to work and expressed disappointment that failover redundancy systems did not function as expected.
The social media platform, formerly known as Twitter, experienced outages over the weekend affecting thousands of users. Earlier this week, a data center outage also disrupted service. Since Musk’s 2022 acquisition, X has faced several reliability challenges.
Shifting Focus from Politics to Business
Musk has indicated plans to scale back his political involvement to prioritize his business ventures. During Tesla’s April earnings call, he said he would “significantly” reduce time spent managing the Department of Government Efficiency (DOGE).
Recent reports suggest Musk has grown disillusioned with politics, despite dedicating billions to political causes and Donald Trump’s 2024 election campaign. Musk himself posted “did my best” regarding his efforts with DOGE and mentioned plans to cut back campaign donations.
Tuesday evening marks the upcoming launch of SpaceX’s Starship Flight 9, with Musk hosting a livestream event originally scheduled for 1 p.m. EDT, later postponed until after the launch. The company faces pressure following two Starship explosions earlier this year.
Tesla continues to face consequences from Musk’s political activities, including protests at showrooms and brand reputation issues. European sales in April dropped 49% compared to last year, totaling 7,261 vehicles, according to the European Automobile Manufacturers’ Association.
Author’s Opinion
Elon Musk’s decision to refocus on his companies is critical to restoring confidence among investors and customers. The recent technical problems on X and SpaceX setbacks highlight the risks of overextending into politics. By dedicating himself to innovation and operational stability, Musk may steer his ventures back on course and rebuild Tesla’s brand credibility.
Featured image credit: Huete
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