As widely expected, Tesla's latest business fundamentals are not looking good.
During the company's second-quarter earnings call on Wednesday, Tesla reported a whopping 16 percent decline in automotive revenue, its biggest drop in over a decade.
There are no two ways about it: Tesla is in a full-blown crisis under Musk's leadership. The mercurial CEO has massively tarnished the company's brand, leading to plummeting sales.
At some level, even Musk seems to get it. The richest man in the world also noted that his time as CEO could easily be cut short, conceding that his 13 percent ownership stake in the company leaves him vulnerable.
"It is a big deal — I don’t want to find I have so little control I can be easily ousted by activist shareholders," Musk said. "That is a major concern to me as I’ve mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting."
"I think my control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy," he added.
In early 2024, Musk argued that he was "uncomfortable" with building AI products and robots with Tesla without having a "25 percent voting control," which critics argued amounted to "blackmail."
The mercurial CEO has put Tesla through a world of hurt, diving head-first into a political race, having screaming matches with top Trump officials in the White House, breaking up with the president in explosive fashion, alienating Democrats and Republicans alike, and all the while furthering racist conspiracy theories and spreading disinformation. Most recently, he promised to dedicate himself to establishing a third political party in the US, in which his critics warned would be yet another enormous distraction from running his carmaker.
Yet even following all that turbulence brought on by Musk, investors and the company's board have largely sat by, enduring his antics and propping up a $1 trillion valuation.
It makes you wonder how much more they can take. Given the company's performance so far this year, Musk has proven time and time again to be incredibly damaging to the business. Sales are in a tailspin worldwide, failing to capitalize on a surge in interest in EVs.
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