Elon Musk, once the face of Tesla’s meteoric rise, seems to be turning his focus elsewhere just as the company faces mounting challenges. With Tesla’s sales slipping and competition heating up, investors and analysts are beginning to question whether Musk still has the passion — or the time — to lead the electric carmaker.
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A shift in priorities
For years, Musk’s relentless promotion of Tesla’s vehicles helped propel the company to the forefront of the electric vehicle (EV) revolution. But recently, his attention has been divided between his role in the Trump administration as head of the Department of Government Efficiency and his various other ventures, including SpaceX, X (formerly Twitter), and his artificial intelligence company, xAI.
Tesla
Tesla’s sales dropped 1% last year despite a 25% surge in global EV sales, a troubling sign for a company that once dominated the market. Meanwhile, competitors like BYD in China and Volkswagen in Europe have gained ground. Tesla’s reliance on just two models — the Model 3 and Model Y — has left it vulnerable, especially as other automakers expand their lineups with more affordable options.
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Investors and employees voice concerns
Shareholders and industry experts have begun voicing concerns about Musk’s leadership. Brad Lander, New York City’s comptroller, whose office oversees a $1.25 billion investment in Tesla, has called for Musk to step down as CEO and focus on strategic guidance instead. “We don’t have a CEO who is fully focused on ensuring that Tesla remains a leader in the EV space,” Lander said.
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Internally, Tesla employees are also growing frustrated. During a recent company meeting, a senior executive acknowledged that Musk’s unpredictable behavior and political activities were causing unease within the company, making it harder to retain and attract talent.
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Politics over production?
Musk’s growing involvement in conservative politics has alienated many potential buyers. Some Tesla owners—including celebrities like Sheryl Crow—have publicly vowed to ditch the brand. In key markets like Germany and France, Tesla sales have plummeted more than 50% in recent months.
Photo by Christophe Gateau/picture alliance via Getty Images
At the same time, Musk has remained largely silent on Trump administration policies that could directly impact Tesla, such as potential rollbacks of EV tax credits. Ford CEO Jim Farley recently warned that such moves could lead to layoffs in the industry, yet Musk has not addressed the issue publicly.
Final thoughts
Tesla’s future hinges on its ability to stay ahead of competitors, particularly in developing a more affordable EV. While the company has promised a new model by mid-2025, few details have been shared, leaving analysts skeptical. A planned $25,000 Tesla was delayed indefinitely last year, raising concerns that the company is losing its competitive edge.
Musk has repeatedly stated that Tesla’s long-term value lies in autonomous driving and robotics, but its investors don’t seem so sure. With sales declining and investor confidence wavering, the immediate question remains: does Musk still care about selling cars, or has he already moved on?
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