Tesla, once at the forefront of the electric vehicle (EV) revolution, now finds itself navigating a series of challenges that have raised concerns among investors, customers, and industry analysts. This article explores Tesla’s current stock performance, technological standing, leadership controversies surrounding CEO Elon Musk, and the strategic options available to the company.

Current Stock Performance and Recent History

As of March 21, 2025, Tesla’s stock is trading at approximately $240.75 per share, a significant decline from its December 2024 peak of $479.86 (Macrotrends). This downturn has been attributed to various factors, including increased competition, production challenges, and leadership uncertainties (Business Insider, 2025).

Tesla’s Technology and Its Protection

Tesla has long been a pioneer in EV technology, particularly in battery innovation and autonomous driving capabilities. However, competitors are gaining ground rapidly. For example, Chinese manufacturer BYD recently unveiled a battery that adds 400 kilometers of range in just five minutes, an improvement that currently outpaces Tesla’s offerings (Business Insider, 2025). Although Tesla holds numerous patents that secure its technological advances, the rapidly evolving EV market means that constant innovation is necessary to maintain its competitive edge.

Calls for Elon Musk’s Departure and Their Rationale

Recent controversies surrounding CEO Elon Musk have intensified calls for his removal from daily management. Critics argue that Musk’s engagement in political activities, including his association with government efficiency initiatives under high profile political figures, has politicized Tesla’s brand (Investors, 2025). Analysts contend that these political ties have alienated segments of Tesla’s customer base and led to public demonstrations outside Tesla dealerships. Some investors believe that Musk’s focus on these external ventures distracts from the company’s core operations, further fueling demands for a change in leadership (Sky News, 2025).

The Interdependence of Tesla and Musk’s Reputation

Tesla’s identity is deeply connected to Musk’s personal brand. His visionary leadership has long been credited with propelling Tesla to the forefront of the EV industry. However, recent actions, ranging from controversial public gestures to political endorsements, have cast a shadow over the brand’s image. Reports indicate that many Tesla owners have sold both their vehicles and shares in protest, signaling a growing disconnect between the brand and its once loyal customer base (The Guardian, 2025). This situation shows the risks of having a business so closely tied to the reputation of one individual.

Strategic Moves Available to Tesla

To address these challenges, Tesla has several potential strategic options:

1. Leadership Restructuring
   Appointing a new CEO or shifting leadership responsibilities could help remove politics from the brand and restore investor confidence. A change at the top might reassure stakeholders that the company remains focused on sustainable energy and automotive innovation.
2. Product Diversification
   Speeding up the development and release of more affordable EV models could broaden Tesla’s market appeal. By introducing vehicles that reach a wider audience, Tesla may be able to respond to competitive pressures and increase market share.
3. Technological Innovation
   Continued investment in next generation battery technology and autonomous driving features is essential. By pushing the limits of innovation, Tesla can maintain and possibly reclaim its leadership position in the fast changing EV market.
4. Brand Rehabilitation
   Launching a strong public relations campaign to reconnect the brand with its core values of innovation and sustainability might help reduce the damage caused by recent controversies. These efforts could rebuild trust among investors, customers, and the public.

Tesla’s current situation highlights the challenge of balancing visionary leadership with strong corporate governance. The company faces serious obstacles, from falling stock prices and rising competition to questions about leadership. However, with smart changes in leadership, product design, technology investment, and brand strategy, Tesla could still come out stronger. The next few months will be key in showing whether Tesla can move past its problems and lead the EV world again.