Musk Says US ‘1000% Will Go Bankrupt’ as Tesla Stock Takes a Hit

Tesla (TSLA) CEO Elon Musk made jaw-dropping remarks about the US fiscal outlook in a wide-ranging interview with The Economist, while fiercely defending his leadership of the Department of Government Efficiency (DOGE) under the Trump administration. The comments, layered on top of Tesla’s already weak earnings, weighed on the stock. As of the close on Friday, July 24, 2026, Tesla shares were at $313.03, down 2.08% from the prior day’s close of $319.69. The stock traded in a range of $306.51 to $322.96 during the session. With the market closed for the weekend, the stock is frozen at that level with no intraday movement.

Musk Issues Bankruptcy Warning, Admits Political Overreach

In the Economist interview, Musk made an audacious prediction. According to Gizmodo, when asked about the US fiscal situation, Musk said the country is “1000% will go bankrupt.”^[Gizmodo] The remark quickly became a market flashpoint. At the same time, Musk offered a rare moment of self-reflection on his role in the Trump administration. As reported by USA Today, he admitted in the interview: “I think I got a little too politically involved. Frankly, I got a little carried away.”^{[USA Today]} Still, he defended DOGE’s work and refused to acknowledge any negative fallout from the department’s actions.

DOGE Results Disputed: Savings Fall Short, Independent Analysis Shows Net Loss

DOGE was created as a temporary department early in Trump’s second term, tasked with eliminating government waste and fraud. Musk had promised the agency would slash up to $2 trillion from the deficit within a year. Yet, according to USA Today, nearly a year in, DOGE’s own calculation of savings stands at just $214 billion—less than a quarter of its most conservative pledge.^{[USA Today]} A large chunk of that—$28.3 billion—came from cuts to the US Agency for International Development (USAID).

But the real impact is hotly contested. CleanTechnica, citing independent analysis, reports that DOGE has actually generated a net loss for the US government of between $27.5 billion and more than $165 billion.^{[CleanTechnica]} The outlet also cites an estimate from Harvard T.H. Chan School of Public Health’s Atul Gawande, who says the way USAID was shut down has already led to hundreds of thousands of deaths. Musk flatly denied this in the interview. When asked if any African children had died as a result, he answered “zero,” calling the reports “bullshit.”^{[USA Today]} However, according to USA Today, the “Impact Counter,” a statistical tracker developed by infectious disease mathematical modeler Dr. Brooke Nichols, records that more than 780,000 people have died within the first year of USAID program cuts, including over 518,000 children.^{[USA Today]}

Tesla’s Troubles: Sales Slide, Musk’s Magic Fades

Musk’s controversial remarks come as Tesla faces a host of challenges. The Atlantic, in an article titled “Tesla Is Failing Upward,” notes the company is dealing with several “self-inflicted wounds.” Musk’s association with Trump and his role at DOGE have alienated left-leaning EV buyers—the core demographic for electric vehicles. Tesla’s global sales fell 9% in 2025.^{[The Atlantic]} In the US, Tesla sales are estimated to have dropped 11% in the first half of 2026. Despite the broader market slump, Tesla’s share of the US EV market jumped from about 42% a year ago to over 50%, largely because other automakers have pulled back or delayed their EV plans after the elimination of tax credits.^{[The Atlantic]}

Barron’s is more blunt, arguing that Musk is losing his magic. In a piece titled “Musk Is Losing His Magic—and Tesla Is Paying the Price,” the outlet analyzes that the post-earnings drop in Tesla’s stock isn’t just about missing estimates—it signals that CEO Musk’s Midas touch is fading.^[Barron's] The article argues that buying Tesla stock was never about the fundamentals; it was always a bet on the future, a vote of confidence in Musk’s ability to see the future more clearly than anyone else. When that trust starts to waver, the stock feels the pressure. In a separate piece, Barron’s notes that Tesla and SpaceX shares both took a beating this week, wiping a significant chunk off Musk’s personal fortune.^[Barron's]

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