Elon Musk's Leadership of Tesla Under Scrutiny Amid Controversies
Investors express concerns over Musk's political engagements and recent allegations as Tesla's Q4 2024 earnings report approaches.
As Tesla prepares to release its fourth-quarter 2024 earnings report, investors are expressing concerns about CEO Elon Musk's political activities and recent controversies.
Over 100 investor inquiries have been submitted, questioning Musk's allocation of time between Tesla and his political engagements.
One retail investor asked, 'How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs.
his public engagements with Trump, DOGE, and political activities?' Another top-voted question inquired about the time Musk intends to spend 'at the White House and on government activities vs time and effort dedicated to Tesla.'
Musk's political involvement has been extensive, including contributing 270 million dollars to former President Donald Trump and other Republican candidates and causes.
He also spent weeks on the campaign trail during the fourth quarter and later at Trump's Mar-a-Lago resort in Florida.
Additionally, Musk has involved himself in German politics, endorsing the far-right Alternative for Germany (AfD) party.
German Chancellor Olaf Scholz criticized Musk's support for right-wing parties within the European Union, describing Musk's actions as 'really disgusting' and a hindrance to democracy in the EU.
According to Brand Finance, Tesla's brand value fell by 26 percent last year, citing factors such as Musk's 'antagonism' and Tesla's aging lineup of electric vehicles.
The researchers found that fewer consumers would recommend or consider buying a Tesla now than in previous years.
Musk's recent gesture, viewed by many as a Nazi salute, has also sparked controversy.
Amy Spitalnick, head of the Jewish Council for Public Affairs, condemned Musk for giving fascist-style salutes, suggesting it encourages violent extremists.
She highlighted Musk's past actions that support far-right ideologies, including questionable social media posts and affiliations.
Despite Musk's dismissals and joking about the incident, Spitalnick emphasized the serious implications such gestures have on normalizing extremism and antisemitism.
Investors are now seeking answers on how Tesla plans to address the negative impacts of Musk's public views and activities.
However, Tesla is under no obligation to discuss these topics during the earnings call.
The company's fourth-quarter earnings report is expected to include updates on its production and delivery numbers, as well as its energy storage deployments.