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Op-Ed: Tesla faces a unique challenge–a growing number of investors who no longer believe in Elon Musk

Daniel Oberhaus, CC BY-SA 4.0 , via Wikimedia Commons

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Tesla’s (TSLA:NASDAQ) Proxy Statement 2024 revealed that the company is asking shareholders to approve two big proposals at the upcoming annual meeting of stockholders in June: Tesla’s reincorporation to Texas and the ratification of Musk’s 2018 compensation plan, which was rescinded by a Delaware judge in late January. Considering the sentiments of the Tesla community online today, it would appear that the electric vehicle maker will be facing a rather unique situation in June — a growing group of shareholders who have grown to dislike Elon Musk. 

Elon Musk has never really behaved like a conventional CEO, not for Tesla or any company that he leads or has led in the past. Tesla will also never have 100% of his time, as he is also the CEO of SpaceX, and he is involved with his other companies like Neuralink, The Boring Company, xAI, and X, formerly Twitter. For years, Musk and the Tesla community seemed to have maintained an agreement that such a setup was agreeable. But with Tesla stock down 40% year-to-date, sentiments surrounding Musk have become quite negative. 

Negative Sentiments

These sentiments became quite evident after Tesla announced that it was looking to ratify Musk’s 2018 compensation package, and they became even more prominent when the company went live with https://www.supportteslavalue.com/, a dedicated website that encourages shareholders to support the company’s proposals. Such sentiments were quite notable in the r/TeslaMotors subreddit, a group with over 2.7 million members. When a user posted a link to https://www.supportteslavalue.com/, the vast majority of the comments claimed that they would be voting against the ratification of Musk’s 2018 compensation package. 

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The same is true on social media platform X. Musk has become more polarizing than ever as he continued to express his opinions on political and societal matters, and this has resulted in a growing number of Tesla community members seemingly getting disillusioned with the CEO. This was quite evident with Leo KoGuan, a prominent retail shareholder who claims to hold over 27 million TSLA shares. While KoGuan has been very supportive of Musk in the past, his recent posts showed a notable disdain for the CEO. “I fell in love with the crafted image, I was naĩve,” KoGuan wrote. He also noted that if Musk only spends more time at Tesla, the company would be so much better off.

A look at the overall sentiments of alleged TSLA shareholders that seem inclined to vote against Musk’s 2018 compensation plan suggests that investors are most frustrated about the company’s stock price, which has never really recovered since Musk sold part of his personal shares when he purchased Twitter. Many are also notably frustrated at Musk’s polarizing and controversial posts on X, some of which seem to be targeting the very demographic that initially supported Tesla and ensured its survival in its early years. The volume of Musk’s posts about topics like DEI, the US border, and politics has also given the impression that he is simply not focused on Tesla anymore. 

Elon Musk: Strength to Liability

Overall, the situation could be summarized as follows: In 2018, most TSLA shareholders seemed secure in the belief that Musk was the company’s biggest strength. In 2024, a growing number of shareholders seem to believe that Musk has become Tesla’s biggest liability. So prominent are these sentiments today that some have seemingly adopted the idea that Musk is now weighing Tesla down and driving it to the ground, so the EV maker’s best chance of survival is to kick Musk out of Tesla and replace him with a more level-headed and focused CEO — someone like Tim Cook, who is arguably not as innovative as Steve Jobs, but is the leader that brought Apple to a $2.55 trillion valuation. 

As noted by Tesla community members on social media, TSLA stock, after accounting for the stock splits that the company has implemented over the years, was trading at less than $20 per share when Musk’s 2018 compensation package was initially approved. Thus, even in its current state, it should be noted that TSLA shares are still up over 800%. While Tesla has fallen significantly from its peak, when the company was worth over a trillion dollars, it is still more than eight times more valuable than it was when investors approved Musk’s compensation plan. 

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In a way, voting against the ratification of Musk’s 2018 compensation plan will probably ensure that Tesla becomes a competent, predictable carmaker — and that’s not so bad at all. Tesla will still be one of the few American automotive startups that survived and thrived in a very long time. That’s a whole lot of accomplishments that can never be taken away from the company, no matter what happens moving forward. Voting in support of the company’s proposals would likely mean that Tesla, under Musk’s leadership, will continue to wager its future on risky innovations that hold world-changing potential, like AI and humanoid robots, all while Musk is focused on multiple, high-profile projects like SpaceX’s Starship program.

History will ultimately determine which of these choices will be the better option for Tesla. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla opens the Q&A for its biggest earnings call yet

Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.

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Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.

The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.

Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.

Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.

There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.

The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.

The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.

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FAA kicks off review of SpaceX’s bid to fly Starship nearly every day

FAA is reviewing SpaceX’s plan for 456 Starship launches a year, up from 25 today.

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

The FAA said Tuesday that it will prepare an environmental impact statement on SpaceX’s proposal to run as many as 456 Starship launches and 912 landings a year from Starbase, Texas. SpaceX is currently authorized for 25 launches and 50 landings annually, which makes the request roughly 18 times the existing ceiling. The notice of intent is set to publish in the Federal Register on Wednesday.

The plan comes in two phases. Phase 1 would allow up to 100 launches and 200 landings a year, on any day and at any hour. Phase 2, which the FAA says could arrive within several years, would raise the limit to the full 456 launches, still at any hour but only on weekdays. The agency noted that 912 landings is the upper limit for the Texas facility no matter where a given mission begins, and that Starship and Super Heavy could come down at the launch site or in the Gulf and open ocean.

A draft statement will be released for public comment at a later date, and the FAA has not said when. According to the Federal Registar, written comments are due November 30 on regulations.gov under docket FAA-2026-12808, with in person scoping meetings on November 17 in Brownsville and November 19 in Port Isabel, plus a virtual session on November 18. The review will weigh air quality, wildlife, coastal resources, water, noise, and aviation, and the FAA said any increase beyond this proposal would need its own separate review.

The numbers look large next to what Starbase has actually done. Starship has flown three times from Texas this year, including Flight 14 on September 28, the first orbital flight, which deployed 26 Starlink V3 satellites. Bloomberg reported that Starbase has never launched more than five times in a calendar year. The current cap of 25 comes from an FAA approval in May 2025. In February, the agency also approved up to 44 Starship launches a year from Launch Complex 39A in Florida, so Phase 1 in Texas alone would more than double that allowance.

Musk has said Starship could eventually fly more than once per hour within less than a decade, per Bloomberg. The nearer term target is Flight 15. Musk said on October 10 that it is hopefully four to six weeks away and will try to catch the ship with the tower, as Teslarati covered. That flight still runs under the existing 25 launch limit, and so would every Starbase launch for as long as the new review takes.

As of mid morning Pacific time on Tuesday, SpaceX had not posted about the filing on its own account.

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Elon Musk drops a Thanksgiving hint about Starship’s biggest test yet

Elon Musk says Starship Flight 15 will try to catch the ship itself, a first.

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Elon Musk says SpaceX’s next Starship flight will try something nobody has done before, by catching the ship itself. Speaking to roughly 2,000 people at the X Takeover event at Giga Texas on Saturday, Musk said Flight 15 is about four to six weeks away and “probably launches a little bit before Thanksgiving, is my guess.”

That is a slip from earlier reporting, which had pointed to a launch as early as October 19. Musk explained why the date keeps moving. “We’re making a bunch of improvements to the rocket between every flight,” he said, adding that there are often hundreds, sometimes thousands, of small changes. This time the list is short, “but some of them take a fair bit of work and we’ve got to go inside the tank to make some of these changes.”

“We’re going to try to catch the ship, which is a super big deal,” Musk said. “If we do so, that’ll be the first time that there’s been full recovery of an orbital class rocket.” SpaceX has already caught the Super Heavy booster with the tower’s mechanical arms, and has talked about catching the ship since late 2025, but the upper stage has never been caught.

Musk also laid out what comes after. “The next big milestone would be to refly both the booster and the ship,” he said, describing a Flight 16 where “all parts of an orbital rocket are reflown.”

The reason SpaceX wants this comes down to cost and cadence. Every Starship ship so far has ended its flight in the ocean, and SpaceX expects most of those water landings to end in fireballs. A ship that returns to Starbase intact can be inspected and flown again. SpaceX’s IPO filing, says Starship V3 is designed to deliver 100 metric tons to orbit in a fully reusable configuration, that SpaceX aims to cut the cost to reach orbit by 99% or more versus the historical average, and that tower catches should allow “multiple launches per day.”

The payoff goes beyond cheaper launches. The next generation Starlink V3 satellites are too large for Falcon 9 and can only fly on Starship, which can carry up to 60 per flight. Flight 14 on September 28 deployed the first 26 of them after Starship reached orbit despite an early engine shutdown, as Teslarati reported. Musk blamed engine computer software, and said the heat shield “was extremely robust,” which he claimed in August had solved Starship’s biggest challenge.

NASA’s Moon plans depend on the same capability. NASA’s inspector general has described a lander mission that needs a propellant depot in low Earth orbit and more than 10 tanker flights, with SpaceX targeting one tanker launch every six days. That schedule only works if ships and boosters come back fast and fly again. Also, ship to ship propellant transfer has not been attempted yet.

One interesting hurdle yet to be explored is bringing the ship back to the launch site, with reentry over land, which will undoubtedly come with a lot of aviation safety reviews.

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