Not all fairy tales are full of happiness. And it is evident from the tech fairytale called Tesla. Tesla is transitioning from being an industry disruptor to being disrupted itself.
Be it the new Full Self Drive (FSD) Mad Max mode or the $1 trillion or walk-out threat by the CEO, it is boardroom chaos that cannot be ignored.
The $1 Trillion Hostage situation
Search Tesla, and you cannot miss the $1 trillion performance-based package demand by Elon Musk. And yes, it is not a typo; it is for $1 trillion. And it is more like a threat than a negotiation, with Musk stating he would walk away from Tesla if the board does not approve the performance-based pay structure.
The vote to be held on November 6th would be a deciding factor in the future of Tesla, which would determine whether Musk becomes the undisputed governor of Tesla or whether they would need to hunt for a new CEO.
Mad-Max on the streets
Tesla recently introduced the “Mad Max” mode in FSD, the mode that puts driving into hyper mode, allowing risky maneuvers and aggressive takeovers, putting the passengers, other vehicles, and bystanders at risk. One famous incident includes the Tesla, in FSD mode, illegally passing a stopped school bus.
The FSD is also in a pickle, as authorities believe it is a level 2 system, meaning human attention is needed. This has invited lawsuits of misinformation and wrong marketing.
Positioned as assertive driving, it appears more of an alarming situation with authorities looking into it.
Cybertruck – Too bright to look at
Not the Cybertruck itself, but the headlights. It has been reported that many Cybertrucks have headlights that are bright enough to blind the person looking at them. An over-the-air update was done, and vehicles were recalled for correction, but the incident has raised questions on the quality control measures.
Sales, Sentiment and Loyalty – Slipping slowly
To understand the impact of a polarizing CEO, look no further than Tesla.
A company on an upward growth trajectory for a long time has seen sales and brand loyalty going down. And though Musk is not entirely to blame for it, he has definitely played a role in it. Other than him, Tesla’s lack of new models, increased market competition, and price wars are other factors that have stalled Tesla’s fairytale growth.
New ambitions and hurdles
Robotaxi and Optimus, Tesla’s two ambitious projects, also seem to be facing issues.
Robotaxi is facing issues with the level 4 and level 5 automation and with the loss of trust among the user base due to the FSD issues.
The Optimus project is also a very ambitious project with hurdles of its own, especially because it aims at creating humanoid robots that would be able to do all tasks done by humans. Achieving that level of precision in a robot and then replicating it in multiple robots for mass production is said to be too ambitious and not easily achievable.
Tesla – At war with itself
Tesla has never been just an automobile company. It has always been about Elon’s creativity and innovation. But recently, the Elon factor has been overshadowing the other factors too much.
His unpredictability, which once fuelled innovation and disruption, is fuelling shareholder anxiety of a potential stock price crash and pushing the company toward disruption.
All these factors are raising alarm bells in the minds of the shareholders who are wondering what is going on with Tesla.
The November 6th vote would determine whether Musk gets the $1 trillion payout or Tesla starts looking for a new CEO. It would also define the future of the company, whether it would stay on the path of unpredictable innovations or would it see a reset, which could start with a crash in the stock prices.
To sum it up:
Tesla’s biggest challenge now is finding someone smart enough to prevent the
company from going down the cliff; the smart cars can be built afterwards.
FAQ’s
Q: What is the $1 Trillion Pay Package Controversy?
A: Elon Musk asked the board to approve a $1 trillion performance-based pay package and has threatened to leave the company if the package is not approved.
Q: Why are Tesla’s sales down?
A: No new models being launched and increased competition from Chinese brands are some factors that have led to a fall in sales for Tesla.
Q: Why were Cybertrucks recalled?
A: Many of the Cybertruck models released between 2024 and 2025 are being recalled due to faulty headlights. The headlights were so bright that they could blind the people in the oncoming traffic.
Q: What is the issue Mad Max FSD mode?
A: The Mad Max FSD mode is a mode that allows the vehicles to accelerate, perform risky maneuvers, and overtake vehicles sharply.
Q: What challenges are Tesla’s Robotaxi and Optimus projects facing?
A: Both the projects face technical vulnerabilities, which include both hardware and software issues, regulatory hurdles, and timeline crises.
