Tesla is facing its first sales decline in over a decade, with a significant drop in demand reported in Q1 2025.
While electric vehicle sales in the U.S. saw a 10% increase during this time, Tesla’s sales fell by 9%, raising serious concerns among employees about the company’s leadership under CEO Elon Musk.
A group of current and former employees has officially requested Musk’s resignation, attributing the downturn to his controversial political actions and leadership style, which they argue have harmed the brand’s image and consumer trust.
Internal Call for Elon Musk’s Resignation Grows as Demand Falls
Despite some employees still supporting Musk’s vision for Tesla to evolve into an AI and robotics leader, an internal movement is growing, arguing that the real issue lies not in Tesla’s products but in leadership decisions.
The employees criticize Musk’s recent claim that he would “refocus” his attention on Tesla, suggesting it shifts blame away from him to the workforce that has kept the company afloat. “Our products are not the problem. The problem is demand. The problem is Elon,” one employee stated, highlighting the disconnect between Musk’s actions and the company’s current struggles.
Amid these tensions, reports indicate that thousands of new Model Ys are sitting unsold, even as Tesla attempts to blame the decline on the model shift. “Production is running better than ever, quality is high, and processes are strong. Demand is what’s broken,” the letter from employees asserts.
Internal frustrations peaked with the firing of Matthew LaBrot, who had been with Tesla for over five years. LaBrot claims he was dismissed in retaliation for his involvement in urging leadership change.
As Tesla confronts these challenges, its workforce remains at a crossroads, debating whether to continue with Musk as CEO or to move forward without him in hopes of reviving the electric vehicle pioneer’s fortunes.