A growing wave of current and former Tesla employees is urging CEO Elon Musk to step down, as the electric vehicle pioneer grapples with a demand slump and internal unrest. The calls for leadership change come on the heels of Tesla’s first annual sales decline in over a decade in 2024, followed by a deeper drop in Q1 2025. Despite recent product launches and claims of strategic pivots, insiders say the core issue is not the cars—but the leadership steering the brand.
An open letter circulating internally and online outlines concerns over Musk’s increasingly controversial public behavior and polarizing political commentary, which employees claim are tarnishing Tesla’s reputation and alienating its customer base. The letter argues that Musk’s actions have undermined consumer trust and shifted the spotlight away from Tesla’s mission to accelerate the world’s transition to sustainable energy. The backlash has already sparked consequences—one longtime employee allegedly involved in drafting the letter was terminated, and associated social media channels have been suspended, raising further concerns about free speech under Musk’s leadership.
With excess inventory of the revamped Model Y and reports of reduced production schedules at the Texas Gigafactory, Tesla’s operational challenges appear to be intensifying. For many employees, the message is stark: the crisis isn’t in Tesla’s technology—it’s in the leadership at the helm.
