Musk needs to become the Natural CEO

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Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Did politics prove in politics very expensive? In its peak last December, its sales and profits report in the first quarter of last week, Tesla lost nearly $ 800 billion in the market value. This knocked on $ 100 billion or so from the wealth of co -founder and CEO, Elon Musk. The shares have been wore a little since then, in part due to the fact that the investors have chanted the promise of Musk to back down from the use of one of the circles in the American government as head of the government’s efficiency department Donald Trump, and spending More time Run the electric vehicle maker. but Repair To Tesla will require more than just a little less preoccupied coach.

Note that Musk no longer devoted all his time to Tesla and Business. He said he would continue to “spend one or two days” every week on “government matters”. Most councils and investors still consider a great distraction for an executive president, especially the supervision of the CEO Half of the companies from the companies At the same time. They may quietly join if the proximity to power has achieved a beneficial effect. However, while the Trump administration moved on Thursday to Reducing rules In self -driving vehicles, Musk was unable to curb Trump’s design to restore other pro -EV policies or a harmful tariff war.

Maga has also turned the commitment to alleviate a wider embrace of the right -wing policy that, along with Doug’s activities, has sparked consumer provinces and consumer provinces Protests in display halls. Within hours of calling Tesla’s profit, Musk was on its X network re -spreading content by the extreme right -wing activist in Britain Tommy Robinson and AFD’s increasing reconnaissance numbers in Germany.

The truth, however, is that Tesla was sick even before the musk of Maga went. Global car sales decreased in 2024 a little from 2023. There was a large part of its profit that comes from the sale of organizational carbon balances to other auto manufacturers instead of selling cars. The collection of shining products for buyers is no longer sexy. Tesla was very slow to offer low -price models. Chinese competitors were allowed Like BYD To gain the edge in innovation. The Chinese consumers received the launch of the “full self” system in February with ignoring; Local competitors have already presented a similar treatment at a cheap price.

Some investors suspect that an indisputable musk was already growing from the management of a car company, and appointed to the next big thing. Tesla insisted last week that she plans to start producing more models at reasonable prices by June on the right track, as well as plans to launch a driver -carrotxi service in Austin. Musk Breezily modified that Tesla was on its way to be the most valuable company in history, as it produced fleets of “Cybercabs” and Humanoid Optimus. However, even the last half of Tesla value almost left its shares as Trump was re -elected. Apply anything close to the “regular” car company, and it is clear that huge amounts of their value are still a bet on seeing Musk.

Tesla’s president’s record indicates that if anyone can realize this vision, then this is. But doing this will definitely require his unpopular attention, not simultaneously at the White House and Mar Lago, X-resisters in all hours, and broadcast with right-wing politicians. If Musk is not ready to back down from these activities, he must appoint an executive director who can lead the unlawful Tesla. Tesla will also benefit from becoming a more natural company in terms of governance. Dilayer State Court, the ruling last year for the vast musk Reward packageThe most prominent relationships of many members of the Board of Directors are close to the CEO.

Musk is already confirmed by a place in Pantheon from international entrepreneurs. But he will lead a well -known for his investors and customers, and it can be said that anyone else, if he restores all his focus on what is better in: being a Insight entrepreneur.