Elon Musk’s Neglect of Tesla
Elon Musk has been accused by Senator Elizabeth Warren of neglecting his duties to Tesla by prioritizing his other projects, such as X and xAI, ahead of the carmaker. Warren highlighted Musk’s multiple leadership roles in various companies and expressed concern about potential conflicts of interest.
Concerns Among Tesla Investors
Investors have been worried about Musk’s many side projects for years, especially after he acquired Twitter (now X) and launched xAi. The delays in unveiling Tesla’s self-driving Robotaxi and Musk’s decision to divert chips originally meant for Tesla to X have raised concerns among shareholders about his commitment to Tesla.
Tesla’s Stock Performance
Tesla’s stock has been struggling in 2024, with shares down 20% year-to-date. The company missed second-quarter earnings estimates and investors were rattled by the delay in the Robotaxi unveiling and AI chip supply issues. Musk’s focus on other projects at a critical time for Tesla has contributed to the stock’s decline.
Senator Warren’s Call for Action
Senator Warren called on Tesla’s board to ensure Musk is meeting his responsibilities to Tesla and its shareholders. She highlighted the need for internal investigations into Musk’s decisions and asked if any specific guardrails had been placed on the CEO. Warren warned that federal regulators may need to intervene if the board fails to address Musk’s neglect of Tesla.
Implications for Tesla’s Future
The ongoing concerns about Musk’s focus on his other projects and potential conflicts of interest could have significant implications for Tesla’s future. As the company faces challenges in the AI and self-driving technology space, investors are looking for reassurance that Musk will prioritize Tesla’s needs and goals moving forward.