Business
Elon Musk Faces Backlash from Investors Over Tesla’s Stock Decline
By Jake Beardslee · February 28, 2025
Shareholder Backlash Against Elon Musk
Tesla CEO Elon Musk, known for his outspoken leadership style and unconventional tactics, is facing backlash from his own shareholders as Tesla’s stock continues its downward spiral. Investors, frustrated with the company's recent underperformance, are using Musk’s own rhetoric against him, demanding to know what he has done for them recently. Gage Skidmore / Wikimedia
Investors Challenge Musk on Social Media
The frustration among Tesla investors reached new heights this week as shareholders took to Musk’s social media platform, X, to challenge him directly. Celebrity photographer Jerry Avenaim posted a message on Wednesday calling on Musk to “Please share five things you did for Tesla shareholders this week,” alongside a graph highlighting the stock’s poor performance. @avenaim / X
Investors Turn Musk’s Own Tactics Against Him
This post is a direct reference to a demand Musk issued to federal employees earlier this month, requiring them to justify their paychecks by listing five accomplishments or face termination. While this approach stirred controversy within the government, some Tesla investors are now repurposing it to question Musk’s leadership as Tesla’s stock price continues to sink. Gage Skidmore / Wikimedia
Tesla Stock Continues Downward Trend
Tesla shares dropped for the sixth consecutive session on Friday, reflecting a 3.04% drop from the previous close, and underperforming the Nasdaq tech index. The stock’s decline has raised concerns among investors, particularly as Tesla’s automotive business faces mounting pressure. While Tesla’s valuation remains 14% higher than it was on the day of Donald Trump’s election, shareholders are growing increasingly anxious about Musk’s recent conduct and strategic decisions. Burak The Weekender / Pexels
Musk’s Federal Employee Mandate Faces Resistance
The shareholder revolt stems from Musk’s recent directive to U.S. government employees, requiring them to submit proof of their work performance under threat of resignation. The ultimatum, which read, “Failure to respond will be taken as a resignation,” drew swift backlash from federal officials. Musk later attempted to downplay the move, stating, “The passing grade is literally just ‘Can you send an email with words that make any sense at all?’” and later adding, “pulse and two working neurons.”Despite the controversy, Trump publicly praised Musk’s efforts, crediting him with attempting to cut $1 trillion from government spending. However, government officials largely ignored Musk’s directive, with cabinet secretaries advising employees not to respond. The White House / Wikimedia
Musk’s Personal Matters
Adding to investor concerns are Musk’s personal controversies and leadership missteps. Recent reports suggest he ignored ex-partner Grimes’s plea for help with their sick child, attempted to suppress details of another child with influencer Ashley St. Clair, and even advocated for the early destruction of the International Space Station following an online spat with a former astronaut. The White House / Wikimedia