Tesla's Board Of Directors Defends Deathly Elon Musk Amid Investor Concerns

JAKARTA - Tesla's board of directors (TSLA.O) on Thursday, May 1, firmly defended CEO Elon Musk, affirming their full trust amid growing investor concerns over Musk's absence, controversial political views, and a decline in sales.

This defense follows a Wall Street Journal report on the potential replacement of Musk, which was denied by the Chairman of the Robyn Council Denholm, who also faced criticism for his compensation.

According to Reuters, Friday, May 2, the board's dilemma reflects Tesla's dependence on Musk's persona, although he oversees several other companies and is involved in politics.

investor concerns are rooted in Musk's promise of autonomous driving technology and humanoid robots that have yet to materialize, while competition from Chinese electric car manufacturers, especially BYD, is growing intensive. Denholm assured investors of Musk's ability to implement growth plans, which is urgently needed given Tesla's decline in sales, particularly in Europe, where Musk's political views are unpopular.

The company's insiders have suggested that Musk hire an operational executive, as he did at SpaceX. However, Musk refused. Changing Musk is considered very difficult, given his central role in Tesla's market value. Analysts and investors doubt any replacements are able to fill his position, with some calling Musk "larger than Tesla."

The departure of several Tesla executives, who oppose the transfer of the company's focus to robotaxi and artificial intelligence, adds to concerns. Musk, as a majority shareholder, has had a major influence on the council. Analysts doubt the existence of an internal executive capable of replacing him, and recognize that most of Tesla's share value is associated with Musk's persona.

Investors and analysts have different opinions about Tesla's future without Musk. Some believe the company can succeed with the appropriate execution, while others are concerned about the impact of his departure. Comparison with legendary CEO Jack Welch of General Electric highlights the risk of excessive dependence on one figure.

Although Musk and Tesla's board did not make direct comments, public incidents such as wearing Trump's supporting cap highlighting his unique and controversial leadership style. Tesla's future will depend heavily on Musk's ability to address current challenges and fulfill promises of advanced technology.