Elon Musk’s role as Tesla CEO has become a focal point of investor and analyst debate, with recent developments suggesting a tension between his corporate leadership and political activities. Here’s a breakdown of the situation:
Tesla shares have plummeted 55% since mid-December 2024, driven by slumping EV sales in Europe/China and skepticism about Musk’s divided focus. Analysts note Musk has been “sleeping on the floor” of his DOGE office in Washington, DC, while Tesla faces production challenges and a $1.4 billion accounting discrepancy. Nearly 60% of retail investors polled believe his White House role hurts Tesla.
Despite these concerns, Musk publicly claims Tesla consumes “the majority of my work time”. He hosted a surprise all-hands meeting in March 2025, pledging to double U.S. production within two years and touting robotics/self-driving advancements. The event briefly stabilized Tesla’s stock, though workers criticized it as “damage control”.
Musk’s role as a Trump administration “special government employee” has polarized Tesla’s brand. While he secured Chinese approval for Full Self-Driving technology in April 2024, his cost-cutting crusade at DOGE has alienated employees and customers. European staff report fear of retaliation for questioning his political ties, and U.S. workers describe an “unsettling” internal culture.
– : CFRA’s Garrett Nelson argues Musk is “spread too thin,” spending more time on DOGE than Tesla. Ross Gerber, a major Tesla investor, suggests Musk should step down as CEO to protect the brand.
– : Wedbush’s Dan Ives insists Musk will remain Tesla CEO for 5–7 years, claiming the company’s future hinges on AI/robotics breakthroughs, not daily oversight.
Musk’s “time blocking” method—scheduling tasks in 5-minute increments—allows him to juggle multiple ventures. However, this approach risks at Tesla, where employees report stalled projects awaiting his input. While Musk delivered 7 million vehicles in 2024, critics argue his absence enabled Chinese automakers to erode Tesla’s market share.
Analysts estimate $150–$200 of Tesla’s stock price (pre-March 2025 crash) relied directly on Musk’s leadership. His departure could trigger further declines, yet his continued political involvement risks brand erosion. As one engineer lamented: “Morally, I’m not sure how much longer I can work for somebody like that”.
In summary, Musk remains technically engaged with Tesla through high-profile goals and crisis management, but his divided focus has created operational voids that competitors are exploiting. Whether this constitutes “absentee leadership” depends on whether investors prioritize visionary direction over hands-on management.
