Is Elon Musk Tesla's Greatest Asset—or Its Biggest Liability?
Tesla’s stock is soaring, but its sales are plummeting. What happens when the CEO becomes the problem?
As Tesla’s market cap nears $1 trillion again, a fired employee’s explosive claims reveal a company at war with itself. Former manager Matthew LaBrot says he was terminated for demanding Elon Musk step down, blaming the CEO’s polarizing leadership for collapsing EV sales. Meanwhile, investors cheer a 7.5% stock surge fueled by China tariff news. Is this disconnect sustainable? Let’s dive in.
🚨 The Crisis: Plummeting Sales and a Divided Workforce
- 9% U.S. sales drop in Q1 2025 vs. 11% industry-wide EV growth
- Second straight quarterly decline looming as April demand falters
- DOGE project fallout: Musk’s controversial $6.6B federal loan battle with Rivian damaged Tesla’s brand
- 125,000+ employees worldwide now face job insecurity amid sinking deliveries
LaBrot’s LinkedIn post claims Musk shifted blame to employees: “It implies hardships stem from a lack of his attention, not his actions.”
✅ The Fixes: Can Tesla Course-Correct?
- ✅ Model Y refresh: New version of Tesla’s best-seller (2/3 of sales) could reverse declines by late 2025
- ✅ Musk’s DOGE exit: Stock rose 33% after he reduced involvement in April
- ✅ China tariff truce: $320 stock surge on eased trade tensions
But feasibility questions remain: Can new hardware offset brand erosion? JPMorgan calls the reputational damage “unlike anything seen in auto history.”
⚠️ Roadblocks: Musk’s Leadership Paradox
- 🚧 Brand toxicity: “People no longer want to associate with Elon” (Tesla Employees Against Elon)
- 🚧 Employee revolt: Internal site accuses Musk of breaking Tesla’s “social contract” on climate action
- 🚧 Political baggage: Trump’s pro-Musk stance (calling Tesla vandalism “terrorism”) alienates eco-conscious buyers
LaBrot’s firing highlights Musk’s risky bet: Can he lead both Tesla and XAI while repairing burnt bridges?
🚀 Final Thoughts: A Trillion-Dollar House of Cards?
Tesla’s stock rebound masks three ticking time bombs:
- 📉 If Model Y refresh underperforms
- 📉 If Musk’s “refocus” proves too little, too late
- 📉 If employee dissent spreads
Yet bulls see hope: Breaking the $320 resistance level suggests technical momentum. But as LaBrot warned: “I believe in Tesla’s mission more than I fear its CEO.”
You tell us: Is Musk still essential to Tesla’s success—or becoming its greatest risk?
Let us know on X (Former Twitter)
Source: Christiaan Hetzner. Tesla manager claims he was fired for warning Elon Musk is at fault for tanking EV sales, May 12, 2025. https://fortune.com/2025/05/12/elon-musk-behind-tesla-ev-sales-tanking-warns-fired-employee/
