Elon Musk, considered by many to be a once-in-a-lifetime pioneer and genius, pushed the boundaries of electric vehicles and sustainable energy. But today, his leadership role at Tesla is under fire, not just from fed up customers, but even from major investors. Ross Gerber, a top shareholder at Tesla, has recently called for Musk’s resignation, pointing out his sudden neglect of the company after President Trump’s inauguration. “He’s been committed to his job in the government, and that’s where he’s spending his time,” Gerber told Sky News. “I’m going to say it: Tesla needs a new CEO.”
Aside from Musk’s new distraction as the head of the Department of Government Efficiency, his leadership role at Tesla has come under fire as a result of his controversial public statements and unstable behavior, particularly on X (formerly Twitter). In addition to Gerber, numerous investors and critics argue that Musk’s focus has shifted away from Tesla’s core mission of sustainability and innovation, leading to broader concerns of mismanagement. These factors have contributed to a major decline in Tesla’s stock value, leaving us to question the company’s future.
Furthermore, Musk’s far-right political position has caused a severed connection within Tesla’s customer base, which is primarily progressive and left-leaning. The parallels between Musk and his new best friend, Donald Trump, such as their polarizing impact, alarming political comments and actions (including the controversy surrounding Musk’s Nazi salute), have intensified debates about whether Musk’s continued leadership actually serves Tesla’s best interests.
Circling back to the investors’ main concerns, Musk’s involvement with the Department of Government Efficiency under President Trump’s administration, which is aimed at reducing federal spending, has sparked major worry. While some, like billionaire (predictably) investor Christopher Tsai, see the potential benefits from Musk’s ties to the Trump administration, there is rapidly-growing concern that his political engagements are voiding Tesla’s credibility in regards to its ultimate goal of worldwide sustainable energy.
Tesla’s brand is facing an identity crisis, with some owners even throwing out the Tesla emblem and replacing it with other car logos, like Toyota and Audi, to disassociate themselves from Musk’s new image. However, as investors and customers question whether Tesla can thrive without him, the question we really need to be asking is whether his resignation would help stabilize the company or further destroy it. Musk’s leadership, despite its weakened support, has undeniably been a pillar for Tesla’s identity, and in this context, it’s important to note that with his massive stake in the company, his influence won’t simply disappear, even if he were to step down (which, given his prideful and unapologetic personality, is highly unlikely).
With all said and done, Tesla will need a major rebrand if it wants to stay at the top of the electric vehicle market, as competitors like Rivian and Lucid Air are already capitalizing on Tesla’s decline.