Tesla investors, worried by a sharp decline in the company’s stock value, are increasingly urging the return of CEO Elon Musk to active leadership.
While Tesla’s stock has been dropping, Musk has been focused on a cost-cutting initiative in Washington, D.C., aimed at restructuring government operations.
During his seven-week stay in the capital, Tesla’s shares have consistently declined, causing significant financial losses.
On Monday, Tesla’s stock dropped 15%, marking its worst single-day loss since September 2020.
Since hitting a record high in mid-December, the stock has fallen 55%, and it has lost more than 40% of its value since the start of the year.
Shareholders are mainly concerned that Musk is spending less time directly overseeing Tesla, in contrast to his earlier hands-on approach where he was known to sleep on factory floors during difficult times.
Now, reports suggest he has been sleeping on the floor of his DOGE government office near the White House.
In a Monday interview with Fox Business, Musk admitted that balancing his numerous responsibilities, including leading the DOGE project, has been a “great difficulty.”
In addition to Tesla, Musk also runs SpaceX, X, xAI, and Neuralink. He remains involved in gaming and is also a father of over 10 children.
Beyond concerns about Musk’s involvement, Tesla is also struggling with declining vehicle sales in major markets like Europe and China, further reducing investor confidence.
An informal online poll asked, “Is Musk’s White House focus hurting Tesla?” About 60% of respondents believed Tesla needed Musk’s full attention, while 25% blamed the media for exaggerating the situation, and 15% attributed the decline to external factors unrelated to Musk.