“The Products Are Good, the Problem Is Elon Musk”… Tesla Employees Officially Request That the Billionaire No Longer Be Their CEO

Tesla, the company that revolutionized the electric vehicle industry, is facing internal turmoil. A group of current and former employeeshas officially called for the resignation of CEO Elon Musk, citing his controversial leadership as a key factor in the company’s declining performance. The petition underscores a growing divide between Musk’s leadership style and the company’s ability to meet the demands of its customer base.

A Growing Demand Problem at Tesla

Tesla’s once stellar reputation is now under threat, not because of the products, but because of its leadership. Employees argue that the real problem is not Tesla’s engineering or production, but the ongoing damage to the company’s image caused by Musk’s actions. They point to a significant decline in demand, with sales dropping for the first time in a decade. Specifically, Tesla’s sales fell 9% in the first quarter of 2025, while electric vehicle sales in the U.S. as a whole rose by 10%. This has sparked a growing concern within the company that the current leadership is not addressing the core issue at hand.

In an open letter, a group of employees emphasized that the damage to Musk’s personal brand has become a liability for the entire company. They stated, “The damage done to Elon’s personal brand is now irreversible, and as the public face of Tesla, that damage has become our burden.” The employees further explained, “We are now at a crossroads: continue with Elon as CEO and face further decline as customers abandon the brand, or move forward without him and allow our products and mission to succeed or fail on their own.”

Musk’s Polarizing Leadership

Musk’s polarizing leadership has become a central issue for many Tesla employees. While some still support Musk, either because they align with his political views or because they believe in his vision of transforming Tesla into an AI and robotics company, others see his actions as detrimental to the company’s future. Employees who signed the letter expressed frustration with Musk’s decision to focus more on his other ventures, such as his work with Dogecoin (DOGE), while Tesla’s challenges continue to mount.

One of the most striking points made by these employees is the disconnect between Musk’s attention to Tesla and the realities on the ground. They criticized Musk’s recent comments about “refocusing” on Tesla, which they viewed as dismissive of the broader issues the company is facing. “It implies that the hardships of the past six months stem from a lack of his attention, not from his actions,” they wrote. They argue that the blame should not be placed on the workers, whose efforts have kept the company afloat during difficult times, but on the leadership itself.

The Impact of Musk’s Actions on Sales

The employees behind the letter also highlighted a disturbing trend: despite Tesla’s efforts to update its product lineup, the company is struggling to move inventory. New Model Y vehicles are sitting unsold in Tesla’s inventory, a clear sign that demand is not where it should be. “Production is running better than ever. Quality is high. Processes are strong. Demand is what’s broken. This is not a product problem. It is a leadership problem,” the letter stated.

Tesla’s decision to focus on new models, like the Model Y, has not provided the expected boost. Instead, these new vehicles are stacking up in inventory, unsold week after week. This is especially concerning given the increased competition in the electric vehicle market, where other automakers are seeing growth while Tesla’s sales continue to decline. In the first quarter of 2025, for instance, while electric vehicle sales rose 10% across the United States, Tesla’s sales dropped 9%.

Consequences for Outspoken Employees

The growing unrest among employees has had serious consequences for some who have spoken out. Matthew LaBrot, a former Tesla employee and one of the main signatories of the letter, claims that his termination was a direct result of his involvement in the protest. LaBrot, who had worked at Tesla for over five years, was let go from his position as Staff Program Manager for Sales and Delivery Training Programs after the letter was made public. He posted on LinkedIn about his termination, which he associates with his involvement in the letter.

A X Account Was Also Created To Share The Letter, But It Was Suspended By The Platform, Which Is Owned By Musk, Who Calls Himself A “free Speech Absolutist.”© Daily Galaxy US

This incident highlights the challenges faced by employees who try to challenge the status quo within Tesla. Despite Musk’s stated commitment to free speech, the letter, which was shared on a platform owned by Musk, was swiftly removed, raising concerns about the limits of free expression within the company. The removal of the letter and LaBrot’s subsequent firing point to the risks employees take when they question Musk’s leadership.

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