Elon Musk is, without question, one of the most consequential figures in modern technology and business. His leadership has propelled Tesla from a niche electric car startup into a global force that has reshaped the automotive industry. Yet questions loom whether Musk’s erratic leadership style, controversial public behaviour, and divided focus are actually harming the company he helped build. Is Elon Musk ruining Tesla? The answer, like the man himself, is complicated.
The Genius That Built Tesla
Musk’s early vision for Tesla was revolutionary. At a time when electric vehicles (EVs) were considered unfeasible for the mass market, he pushed for ambitious technological advances, championing long-range batteries, high-performance drivetrains, and cutting-edge software integration. His relentless drive helped Tesla achieve milestones that traditional automakers deemed impossible: Building the first viable electric sports car (the Roadster), making EVs mainstream with the very handsome Model S, and proving mass production of EVs could be profitable with the Model 3 and Model Y. Tesla’s success pressured legacy automakers to accelerate their own EV programs – perhaps without enough introspection – fundamentally changing the trajectory of the industry.
Financially, Tesla also benefited tremendously from Musk’s vision. The company saw explosive stock growth, achieving a trillion-dollar valuation at its peak. Musk’s cult of personality was instrumental in attracting investors and customers alike, creating an unparalleled brand loyalty that allowed Tesla to operate with marketing costs close to zero.
The Chaos That Could Break Tesla
However, Musk’s leadership comes with significant drawbacks. His unpredictable behaviour—whether on social media, in interviews, or in boardrooms—has caused real damage to Tesla’s reputation. Before acquiring Twitter for his own use, his tweets alone led to SEC investigations, stock fluctuations, and even lawsuits. While some investors and fans appreciate his unfiltered, maverick persona, others see it as reckless and detrimental to Tesla’s long-term stability.
Additionally, Musk’s growing distractions with other ventures—SpaceX, Neuralink, X (formerly Twitter), and most recently, his role as head of the US’s newly formed Department of Government Efficiency (DOGE) —raise concerns about whether he is giving Tesla the attention it needs. Running a car company, especially one as complex and ambitious as Tesla, requires full-time leadership. As Musk stretches himself thinner, Tesla faces strong competition from both legacy automakers and new EV startups, some of which have demonstrably caught up in technology, affordability and production quality.
The Cracks in Tesla’s Armor
New entrants from China show that Tesla’s once-insurmountable lead in the EV space is very much under threat. Ironically, the quality issues that originally plagued Tesla vehicle (panel gaps, paint problems, suspension issues) are less glaring, perhaps a function of the new competition who have introduced models with strong manufacturing standards. However, Tesla’s aging model lineup and delays in delivering long-promised projects (Robo-taxis, full-self driving vehicles) show that the company struggles to maintain its innovative edge.
Further, there is no doubt that Musk’s personal reputation has taken hits that have spilled over to Tesla. His new role in the White House resulting in the termination of tens of thousands of US federal employees notwithstanding, his far-right leanings (gestures?) have alienated huge segments of Tesla’s customer base. There have been protests and violent attacks on Tesla stores and vehicles around the world. While Tesla has enjoyed strong demand in the past, brand loyalty is not immune to shifts in public perception. Today we’re seeing clear evidence of this: Tesla sales have slumped 36% in the first quarter of this year. This is the worst performance for any period since 2022.
The Verdict: A Double-Edged Sword; Vision and Personality
So, is Musk ruining Tesla? The answer depends on perspective. If we measure Tesla’s success solely by stock price and financial performance since going public, Musk’s vision brought unparalleled growth. However, if we look at the bigger picture today and Tesla’s competitive position and long-term prospects as veritable risks then Tesla looks a little less S3XY.
For Tesla to re-establish itself, it needs to evolve beyond Musk’s personality. That doesn’t necessarily mean Musk should step down, but the challenge is whether Musk, who has built Tesla in his own image, is smart enough to park his political meddling’s and other projects far enough away (Mars, perhaps?) to focus on the immediate risks facing Tesla.
