Tesla Employees Call for Musk’s Resignation Amid Sales Decline and Internal Backlash

A group of current and former Tesla employees has published an open letter calling for CEO Elon Musk to resign.

The letter cites growing concerns over his public behavior, political statements, and the impact on the company’s brand and internal culture. It was released in the wake of Tesla’s first year-over-year decline in sales in over a decade, adding fuel to what the authors describe as a leadership crisis at the top.

The signatories argue that Musk’s actions are damaging the company’s reputation and turning away both customers and employees.

They describe a growing disconnect between Musk’s personal brand and Tesla’s mission of clean energy and mass electrification. The letter claims this gap is weakening public trust and contributing to a loss of market share as competition intensifies globally.

Tesla’s global deliveries dropped in the most recent fiscal year, breaking a ten-year growth streak. At the same time, the company is facing heightened competition from Chinese manufacturers like BYD and from legacy automakers rapidly scaling their EV lines.

Analysts have noted that Tesla’s product lineup has aged, price cuts have squeezed margins, and consumer sentiment has cooled, particularly as Musk becomes increasingly associated with polarizing political commentary and online behavior.

One employee who helped organize the letter says he was fired shortly after its publication.

“Our products are not the problem. Our engineering, service, and delivery teams are not the problem. The problem is demand. The problem is Elon,” he said.

He claims the termination was retaliatory and linked directly to his public criticism of Musk. This has raised fresh concerns about internal culture at Tesla and how dissent is handled inside a company known for its centralized control and strong executive influence.

The letter does not present an alternative CEO or demand immediate structural changes. It focuses instead on Musk’s conduct as a liability — pointing to alienated customers, investor uncertainty, and a sense among employees that Tesla’s public image no longer reflects its original mission.

The authors frame the issue as one of accountability, saying that Musk’s behavior is not just a distraction but a strategic risk.

Tesla has not publicly responded to the letter or the firing allegations. Its board of directors has not issued any statements regarding the CEO’s position. Historically, Tesla’s leadership has avoided commenting on internal dissent, and Musk retains firm control of the company through both influence and shareholding.

The United States remains Tesla’s largest market, but even here, its dominance is weakening. Niche competitors are expanding, and loyalty among early adopters is showing signs of strain.

Meanwhile, Tesla’s brand identity has become increasingly intertwined with Musk himself, making it difficult to separate company performance from CEO visibility.

The letter from employees formalizes a conversation that has been happening informally among analysts, customers, and even shareholders for months: whether Musk’s influence is still an asset or whether it is starting to drag Tesla down.