According to recent reports, a group of Tesla employees has come together, demanding a resignation from their CEO, Elon Musk. Elon’s position in the company only seems to be weakening day by day as speculations about his potential replacement increase. The Wall Street Journal recently reported that its board members are looking for a new CEO. However, the board members straight away denied the claim and termed the report false. This new development in the story comes as the company witnessed a fall in sales for the first time in decades. In case you want to know exactly why the Tesla employees are demanding Elon Musk’s resignation, the following article is a must-read for you.
What Did The Tesla Employees Say In The Open Letter?
The open letter from the Tesla employees posted on the website, which is called “Tesla Employees Against Elon,” claimed that the company is currently at a pivotal moment and that it is ready to move on. It did not really highlight a particular problem the car manufacturing company is facing. However, it did mention that the company is currently standing at a crossroads. They can either accept a decline in sales and customers, and end the brand with Elon leading it, or continue its operations without him and allow the products to succeed or fail on their own. The company has witnessed a 71% decline during the first quarter this year, while the stock has dropped 40%.
Why Is Elon Considered The Reason Behind The Decline In Tesla’s Sales?
The main reason why Elon is being considered responsible for the decline in Tesla’s sales is his association with the Trump administration. His department, DOGE, focuses on reducing government spending and the workforce. This has resulted in many government employees being laid off and losing their source of income. The letter openly highlighted this connection, mentioning that their cars didn’t get worse, but people just don’t want to associate with Musk.
How Did The Open Letter Tackle Tesla’s Official Explanation For The Decreasing Sales?
Tesla, in its official explanation regarding the drop in sales, simply blamed the changes in production, especially the unavailability of the Model Y vehicles. However, the stats presented in the open letter contradict it. The letter clearly mentioned that its products, engineering, service, and delivery teams are not the problem. It highlighted the differences between overall EV market growth and Tesla’s performance. The market witnessed a growth of 10% in the United States during the first quarter, but Tesla’s sales dropped 9%. According to what the letter claims, the stock of the new Model Y vehicles is also piling up with no sales.
How Did The Open Letter From Tesla Employees Address Elon’s Promise Of Refocusing On Tesla?
During the earnings call last month, Elon promised he’s going to start directing his focus back to Tesla as his role in government is set to end on the 30th of May 2025. However, the open letter issued expressed skepticism regarding this promise. The letter mentioned how Elon’s promise is downright insulting. The promise implies that the decline in the company’s sales and the sufferings it endured were a result of a lack of focus. The letter claims that this shifts the blame for the decline to the people who held the company together.
How Did Tesla React To The Demand Of Elon’s Resignation?
According to the reports, Matthew LaBrot, an employee connected to the creation of the website, claimed he had been fired from his post at Tesla. The employee claims he has been working for the company for over five years. He was appointed as the “Staff Program Manager for Sales and Delivery Training Programs” before he was fired. The X account that posted the letter has also been suspended. The board members did not express any signs of withdrawing their support from Elon. However, the latest development highlights the growing tensions within the company.
