Elon Musk is navigating a turbulent period marked by substantial financial losses and mounting legal challenges, which are complicating his path to recovery.

In a dramatic turn of events, Musk has seen his wealth shrink by $100 billion over the past three months. This significant loss has prompted a shift in his approach to government relations, as he reassesses his strategies amidst growing pressures.

The past 24 hours have been particularly challenging for Musk. He suffered a $20 million defeat after backing a pro-Trump candidate in the Wisconsin Supreme Court race. This political setback was followed by alarming news from Tesla, which reported its largest sales decline ever—a 13% drop in the first quarter. Meanwhile, Tesla’s top competitor experienced a 60% surge in revenue during the same period, highlighting the growing competitive pressures Tesla faces.

Adding to Musk’s woes, a Politico report suggested that his influence in Washington is diminishing. The report quoted insiders from the MAGA movement who believe Musk’s presence in the political arena has become unwelcome. Although the White House dismissed the report as “garbage” and Musk labeled it “fake news,” the administration confirmed that Musk’s tenure as a “special government employee” will conclude soon, potentially in late May or June.

This development provided a slight boost to Tesla’s stock, reversing a 6% decline. Investors are hopeful that Musk will shift his focus back to addressing Tesla’s pressing issues, such as its dwindling market share and the long-overdue promises of advancements in autonomous driving technology.

Musk, both the public face and largest individual shareholder of Tesla, is experiencing the intertwined effects of his personal and professional challenges. His alliance with far-right political figures has tarnished Tesla’s brand among its traditional customer base—progressive, eco-conscious consumers from coastal regions.

Attempts to replace these customers with those from conservative states, where electric vehicle adoption has been slower, have not yielded positive results. Initiatives such as a live Tesla sales event with Trump on the South Lawn appeared desperate, and the Commerce Secretary’s call for Americans to invest in Tesla shares fell flat. The FBI’s controversial move to label Tesla vandalism as domestic terrorism further exacerbated the brand’s struggles, as legal experts criticized this broad interpretation of “terrorism.”

Musk’s political endeavors have also faced setbacks. His attempt to influence the Wisconsin Supreme Court race by donating large sums of money backfired, as the court maintained its liberal majority. This episode underscored the limitations of Musk’s financial influence in the political arena.

In summary, while Musk remains the world’s richest person with a net worth of $323 billion, these recent events serve as a stark reminder that financial power has its limits. As Tesla’s sales continue to decline, Musk is learning that wealth alone cannot resolve all challenges, especially when it comes to regaining consumer trust and navigating complex political landscapes.