Tesla CEO Elon Musk is under increasing fire. His businesses face an existential cry for a steep decline in sales and a rash of bad-actor moves that have sent alarm bells clanging among investors and heads of pension funds. During a recent interview on CNBC from Tesla’s headquarters in Texas, Musk revealed his commitment to maintaining a “maniacal intensity” in overseeing both Tesla and SpaceX’s Starship projects. This announcement comes at the same time that Tesla faces enormous headwinds. The firm has seen close to a 50% monthly sales decrease on average, compared to last year across Europe.
Investors are calling on Musk to get back to focusing on his companies. They are most alarmed, though, by his deep engagement in projects outside the company, such as xAI. Musk’s high-profile role as an architect of the U.S. Department of Government Efficiency (DOGE) has raised alarms among some stakeholders. Rumors suggest that his antics outside of Tesla are to blame for the current brand fallout and sales figures cratering right now.
Musk is continuing to play for keeps on the corporate side, too. The main stage. In fact, he’s spent nearly $300 million to help make Donald Trump’s comeback to the White House happen. He has formally endorsed Germany’s far-right AfD party ahead of the country’s parliamentary elections this year. These political alignments have caused alarm among investors, fearing that Tesla’s politically toxic reputation will hurt sales.
In a recent order, the Delaware Court of Chancery directed Tesla to unwind Musk’s 2018 CEO compensation deal. This package had initially been priced at about $56 billion. This ruling deepens the already murky situation regarding Musk’s leadership at Tesla. He’s clearly rolling up his sleeves to get things back on an even keel for the company.
Leaders of one of Tesla’s pension funds have voiced their concerns about the governance state of Tesla, saying
“Tesla’s stock price volatility, declining sales, as well as disconcerting reports regarding the company’s human rights practices, and a plummeting global reputation are cause for serious concern.”
As part of his strategy to regain control and stabilize Tesla’s operations, Musk is now seeking 25% voting control of the company. His plans to maximize his influence are starting to come into focus. They come amid rising speculation about the longer term course of Tesla and its share price.
“Moreover, many issues are linked to Mr. Musk’s actions outside of his role as Technoking and Chief Executive Officer at Tesla, including his high-profile role as an architect of the U.S. Department of Government Efficiency (DOGE).”
Musk’s challenges extend beyond mere sales figures. They encompass broader concerns about how his political activities and leadership style impact Tesla’s image. Walter Isaacson recently called attention to that “maniacal intensity” in his invocation of the miracle of Tesla and SpaceX. This resolve has the potential to propel the firms to new heights or deepen their existing predicaments.
Musk’s challenges extend beyond mere sales figures; they encompass broader concerns about how his political activities and leadership style impact Tesla’s image. Walter Isaacson recently discussed Musk’s “maniacal intensity” on both Tesla and SpaceX, highlighting that such determination could either steer the companies toward success or exacerbate their existing issues.