Fred Lambert, an investor and journalist, recently sold all his Tesla shares due to concerns over Elon Musk’s shifting focus away from Tesla’s original mission towards robotics and AI. Investors are increasingly frustrated with the lack of new vehicle models and Musk’s distractions from Tesla’s core objectives, leading to calls for new leadership. The company’s declining delivery figures and Musk’s multifaceted commitments raise questions about his future with Tesla, as investor sentiment remains divided on his impact.
The Shift in Tesla’s Direction
Several months ago, Fred Lambert, a renowned journalist from the electric vehicle-focused platform Electrek, penned an article titled “I sold all my Tesla shares, here’s why.” Having tracked Tesla since 2008 and becoming an investor in 2010, Lambert took the decision to divest completely in the summer of 2024. His primary concern? The changing attitude and vision of Elon Musk, which he believes signifies a departure from Tesla’s original mission.
Over the years, Tesla has evolved from being a pioneer in the energy transition through electric vehicles, from the Tesla Roadster to the Cybertruck, to a company increasingly focused on robotics and artificial intelligence, including ventures like autonomous driving (FSD), Robotaxi, and the Optimus robot. This shift aligns closely with Musk’s ambitions, raising questions among investors.
Investor Sentiment and Concerns
Is this transformation troubling? According to a segment of disgruntled investors, it certainly is. A February 4, 2024, article from Electrek titled “Tesla shareholders are finally ready to fire Elon Musk,” authored by Lambert, illustrates this sentiment. It suggests that investors are beginning to recognize the implications of Musk’s leadership and some are calling for a change at the top, fueled by discussions on platforms like Reddit.
Investors have expressed their desire for new leadership for several reasons. First and foremost, there has been a notable absence of new Tesla models, aside from the Cybertruck, in the last five years. Projects like the Robotaxi, which lacks conventional driving controls, have seemingly been shelved, and the much-anticipated Model 2, expected to be priced under $25,000, has reportedly been canceled.
Many believe Musk has erred by concentrating on autonomous technology over traditional electric vehicles, which directly impacts the environmental goals of the transport sector. The company’s recent fourth-quarter figures for 2024 support these concerns, revealing a historic annual decline in deliveries, while the wider industry continues to grow.
Adding to the dilemma, Musk’s involvement in various ventures, including government projects under the Trump administration, raises questions about his commitment to Tesla’s core mission. His focus on multiple companies—including X, Starlink, SpaceX, xAI, Neuralink, and The Boring Company—has left investors wondering about his ability to dedicate sufficient time to Tesla. During Tesla’s latest financial results announcement, Musk’s distraction was evident as he tweeted about unrelated topics, seemingly undermining the importance of the conference.
This situation has prompted some Tesla customers to consider selling their vehicles or opting for brands that align more closely with their values. As a result, Musk’s polarizing persona is increasingly seen as a liability for Tesla, potentially contributing to declining sales numbers.
Looking ahead, will 2025 mark the year Tesla parts ways with Elon Musk? It remains uncertain, as he continues to play a vital role in the company’s external communications. Musk is a staunch advocate for autonomous driving technology (FSD), which he claims will be available in Europe and China by 2025, although he has previously acknowledged possible delays.
Ultimately, as long as Tesla’s stock price remains strong, it’s unlikely that Musk will be removed from his position. The market dynamics appear to dictate his future at the company.
Whether Musk’s exit would be beneficial or detrimental is a matter of debate, particularly in a rapidly evolving electric vehicle landscape where Tesla could lead the way in autonomous technology using cameras instead of LiDAR, unlike its competitors. The impact of Musk’s character on Tesla is becoming increasingly significant, and all eyes will be on any potential votes of confidence regarding his leadership. For such a vote to take place, investors would first need to challenge the board of directors, a scenario that is not currently on the horizon.