Context:

Tesla is facing significant challenges, including declining sales and profits, partly due to Elon Musk's involvement in activities outside the company such as political endeavors and managing his social media platform, X. Despite Tesla's pivotal moment with plans for robotaxis and humanoid robots, there is concern that Musk's lack of focus as CEO is detrimental to the company's future. Some shareholders and analysts are calling for the Tesla board to impose restrictions on Musk's time and activities to ensure he dedicates more attention to the company. As Tesla's stock value drops and market share diminishes, there is skepticism about Musk's commitment to the electric vehicle business, with suggestions that he may be more interested in other ventures. Ross Gerber, a former supporter and investor in Tesla, has expressed disappointment in Musk's leadership and doubts the board will take action to replace him or enforce necessary changes.

Dive Deeper:

• Elon Musk's focus on activities outside of Tesla, such as his political ambitions and managing X, has led to concerns about his ability to effectively lead the company during a critical growth phase.

• Tesla has encountered severe financial challenges, including a significant drop in sales, diminished profits, and loss of regulatory credits, exacerbated by Musk's controversial political stance.

• Calls from shareholders and analysts emphasize the need for the Tesla board to set boundaries on Musk's time allocation and political endeavors to ensure he prioritizes Tesla's operational needs.

• Musk's lack of enthusiasm for Tesla's core electric vehicle business is evident, as he appears more interested in developing robotaxis and humanoid robots, possibly as a distraction from existing company issues.

• Tesla's robotaxi service, despite being highly anticipated, is lagging behind competitors like Waymo, with limited deployment only available to selected guests, raising doubts about Musk's capability to lead this transition.

• Ross Gerber, a former investor and supporter of Tesla, has expressed frustration with Musk's leadership, selling his shares and advising others to do the same due to Musk's disconnect from reality and lack of focus.

• Despite mounting pressure, it is unlikely that Tesla's board will impose constraints on Musk or replace him, as he remains a central figure to the brand, albeit a divisive one.