Musk must become a more normal CEO

Unlock Free

Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

Have you ever been so expensive in politics? Between its peak last December and its unpleasant sales and benefits report of the first quarter last week, Tesla lost about $ 800 million in market value. This reached a fresco of $ 100 million more or less of the richness of its co -founder and CEO, Elon Musk. Since then, the actions have bounced a bit, in part, as investors have encouraged Musk’s promise to step back to exert a chainsaw in the United States government departments as head of the so -called Donald Trump Government Department efficiency and spending. More time By operating the electric vehicle manufacturer. Only Repair of damage For Tesla it will require more than a slightly less distracted head.

Note that Musk did not promise to spend all the time on Tesla and business. He said he would still “spend a day or two” every week in “government issues”. Most boards and investors would still consider a major distraction for a CEO, especially one who oversees Half a dozen companies At the same time. They could quietly access if the proximity to power provided useful influence. Although the Trump administration happened on Thursday to Relleng rules In autonomous vehicles, Musk has not been able to stop Trump’s determination of receding other pro-EV policies or their harmful fare war.

Nor did the magician promise to loosen the broader embrace of correction policy protests in the exhibition halls. At the time of Tesla’s earnings call, Musk on his network re -published content of the far -right activist of Britain, Tommy Robinson, and increased the numbers of the German AFD polls.

The reality, however, is that Tesla was bad even before Musk went Maga. Its global car sales in 2024 had dropped slightly since 2023. An expanding part of their benefit came from selling regulatory carbon credits to other automobile manufacturers instead of selling cars. His aging product line was no longer exciting buyers. Tesla has been too slow to introduce lower price models. And has allowed Chinese rivals such as Byd to gain an advantage in innovation. Chinese consumers greeted the launch of the Tesla’s “self-teaching” system in February with a shoulder; Local rivals already offered cheaper similar assistance.

Some investors suspect that the restless musc was already bored of running a car company, with his gaze on the next important thing. Tesla insisted last week that plans to start producing more affordable models in June were underway, along with plans to launch their driverless robotax service in Austin. Musk said that Tesla was the most valuable company in history, producing “cybercabs” fleets and humanoid robots Optimus. However, even the recent reduction in Tesla value has only left its actions approximately where they were when Trump was re -elected. Apply anything close to a multiple “normal” automatic company, and it is clear that the large amounts of its value are still a commitment to Musk’s vision.

Tesla’s head record suggests that if anyone can realize this vision, he is him. But, it will surely require your indivisted attention, not to hang simultaneously in the White House and Mar-Aago, X-ING at all times, and take a journey in Lasis with right-wing policies. If Musk is not willing to move forward in these activities, he should appoint a CEO who can direct Tesla. Tesla would also benefit from becoming a more normal company in terms of government. The Delaware Chancellery Court, which ruled last year on Musk’s vast Packet of remunerationHe emphasized the close links of many members of the Council with the CEO.

Musk is already assured of a place in the pantheon of world business pioneers. But would do a favor to their investors and customers and probably Visionary entrepreneur.