The automaker’s shares fell for six straight days as of Thursday, continuing a remarkable decline of 25 percent since the start of the year. The losing streak finally came to an end on Friday, but it’s a small reprieve amidst a lengthy slump.
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Tesla shareholders upset with Elon Musk
Tesla shareholders are increasingly holding company CEO Elon Musk accountable, questioning his actions and decision-making. The backlash comes in response to Musk’s controversial request for US federal employees to justify their salaries by listing five weekly accomplishments—a tactic he previously applied at Twitter. Now, as Tesla’s stock declines, investors are pushing back, asking Musk to account for his contributions to the company’s shareholders.
The dissatisfaction underscores wider concerns about Musk’s leadership, especially his attention being spread across various ventures like SpaceX, Neuralink, The Boring Company, and his recent position as the U.S. government’s “efficiency czar.” This ongoing criticism has fueled debates about his dedication to Tesla, a company once hailed as a pioneer in the electric vehicle (EV) market.
“I am completely convinced that the CEO’s reputation goes along with the success of the company,” Paul Argenti, a communications professor at the Tuck School of Business at Dartmouth College, told Axios. But, “you don’t want the CEO to be the only source of brand equity for the company,” Argenti added. “That’s a disaster, and we’ve seen that happen before with examples like Elon Musk, Steve Jobs or Martha Stewart.”
Elon Musk called out by investors
Amid Tesla’s stock decline, shareholders have to Elon Musk’s own platform X, formerly known as Twitter, to complain and air their grievances. Losing their patience, some are now mocking Musk’s controversial threat to fire federal workers if they didn’t send an email explaining what they’ve accomplished in the past week.
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“Please share five things you did for Tesla shareholders this week,” celebrity photographer and Tesla investor Jerry Avenaim tweeted in response to Musk on Wednesday, inspiring copycats. “Or are you working remotely? Asking for all of us.”
Musk catching flak from his own backers is rare, but it happens. Last year, some Tesla investors refused to approve Musk’s multi-billion dollar pay package, criticizing him for no longer being focused on the company. Accompanying the post was a stock performance graph showing Tesla’s downward trend. The sarcastic remark directly referenced Musk’s demand that federal employees justify their roles with weekly accomplishment lists, which had drawn criticism from government workers.
Tesla investors are now challenging Musk using his own words, asking him to justify his leadership as stockholders witness losses. The growing unrest among investors signals a shift in sentiment, as many once ardent supporters now express skepticism over Musk’s priorities and Tesla’s future.
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Musk’s expanding commitments a matter of concern?
Elon Musk’s involvement in multiple ventures beyond Tesla remains a key concern for shareholders. His leadership roles at SpaceX, Neuralink, The Boring Company, and X have fueled worries that he may be overextended. Adding to the debate is Musk’s recent appointment as the U.S. government’s “efficiency czar” under Donald Trump’s administration, where he is tasked with improving governmental operations.
Critics argue that this political role further distracts him from Tesla during a crucial period. Musk’s controversial management style also raises concerns. His advocacy for an intense work culture at Twitter, along with mass layoffs and provocative social media statements, has led some investors to fear similar instability could affect Tesla’s future.
Why are Tesla stocks going down?
Tesla’s stock woes are a reflection of ominous business fundamentals. It had a rocky 2024, with its net profits plunging by 71 percent and revenue from vehicle sales shrinking by over $5 billion.
Since the start of 2025, Tesla stocks have faced significant volatility and this sharp decline has raised massive concern among company’s investors. The electric vehicle market faces growing competition from legacy automakers like Ford and GM, as well as global rivals such as BYD. Tesla continues to grapple with production and delivery challenges, exacerbated by supply chain disruptions impacting output.
Concerns about the company’s long-term strategic direction are heightened by Elon Musk’s divided focus across multiple ventures. Meanwhile, Tesla faces increasing regulatory scrutiny over its Full Self-Driving (FSD) technology and ongoing legal disputes related to product safety. Market analysts warn that Tesla’s declining stock may further weaken investor confidence unless Musk reinforces his commitment to the company’s growth and stability.”
