Tesla is facing a Tesla investor backlash after CEO Elon Musk made several controversial political moves. Key investors are upset, worried that Musk’s political focus is hurting Tesla’s brand and stock. Some have even asked the board to force Musk to return full-time—or find a new CEO
📉 What Happened?
- Elon Musk openly supported Donald Trump’s return to power and made several political statements online
- Investors fear these moves damage Tesla’s public image, especially among younger buyers.
- A recent Morgan Stanley–led survey found that 85% of Tesla investors believe Musk’s politics have a negative impact on the company
🏦 What Investors Want
Big investors like Ross Gerber, CEO of Gerber Kawasaki, have urged the Tesla board to:
- Tell Musk to spend at least 40 hours a week focused on Tesla.
- Or appoint a new CEO if Musk won’t step back from politics moneycontrol
They worry that Tesla’s brand strength is falling while sales slow down.
📊 The Impact on Tesla
- Tesla’s quarterly deliveries have dropped again
- A pension fund in Pennsylvania even stopped buying new Tesla shares because of the controversy
- Some analysts fear the brand damage may take years to repair.
⚠️ Why This Matters
Tesla is not just a car company—it’s a brand loved by millions. But as Musk’s political actions attract headlines, long-term investors worry the company could lose trust with customers.
✅ Summary
The Tesla investor backlash shows rising concern over Musk’s political choices. Investors say Musk should refocus on Tesla to protect its reputation and share price. For now, the Tesla board faces tough questions about leadership and strategy.