Introduction

On June 25, 2025, a former Tesla employee and self-proclaimed loyalist has issued a stark warning that could shake the foundations of the electric vehicle giant. Matthew LaBrot, who managed a Tesla dealership until his recent firing, has publicly called for Elon Musk to step down as CEO and sell his substantial stake in the company to avert what he describes as an impending collapse. This dramatic statement comes amid a turbulent period for Tesla, marked by plummeting sales, a battered stock price, and growing backlash against Musk’s political entanglements. As the world’s richest man faces mounting pressure, LaBrot’s plea highlights a deepening crisis within Tesla, raising questions about leadership, brand reputation, and the company’s future in a competitive market.

The Warning: A Cry from Within

LaBrot, who worked at Tesla for nearly six years before launching “Tesla Employees Against Elon” in May 2025—a protest site critical of Musk’s leadership—delivered his warning in a recent interview with Hard Reset. Fired shortly after for his dissent, LaBrot, a self-described EV activist who still drives a Model Y and Cybertruck, argued that Musk’s political involvement and management style have irreparably damaged the brand. “I don’t think there’s anything he can do to change the people’s opinion who’ve decided they’re not going to support Tesla outside of him leaving,” he said, adding that some even demand Musk sell all his shares—a drastic measure he deems necessary to salvage the company.

LaBrot’s critique centers on Musk’s role as head of the Department of Government Efficiency (DOGE) under President Donald Trump, a position he held until late May 2025. His alignment with Trump, including a $250 million campaign donation in 2024, has alienated Tesla’s core customer base, many of whom lean liberal and associate the brand with sustainability. The “Tesla Takedown” protests, vandalism of showrooms, and a 13% sales drop in Q1 2025 underscore this shift. LaBrot, who once admired Musk, grew disillusioned as the CEO’s political stance clashed with Tesla’s environmental mission, a tension he believes has pushed the company to the brink.

The Crisis: A Company Under Siege

Tesla’s struggles are well-documented as of 10:41 AM +07 on June 25, 2025. The company reported a 71% profit decline in its latest earnings call, with vehicle deliveries falling to 337,000 in the first quarter—down from 387,000 the previous year. Stock prices have tumbled 34% year-to-date, erasing over $300 billion in market value since January. This decline accelerated after Musk’s public feud with Trump over a tax bill, which saw shares drop 14% in a single day on June 5, wiping out $150 billion. The backlash intensified with boycotts in Europe and the U.S., where dealerships have faced Molotov cocktail attacks and sticker campaigns denouncing Musk.

The brand’s reputation has taken a hit, with analysts like Ross Gerber of Gerber Kawasaki Wealth and Investment Management calling the situation a “brand tornado crisis.” Tesla’s resale values have plummeted, with the Model Y losing significant worth due to oversupply and waning demand. The Cybertruck recall, covering 46,000 units for safety issues, and a sluggish robotaxi rollout in Austin have further eroded confidence. LaBrot argues that Musk’s distraction—splitting time between Tesla, SpaceX, xAI, and his political role—has left the company rudderless, a sentiment echoed by investors and former employees on platforms like X.

Musk’s Response: Defiance Amid the Storm

Musk has countered these challenges with optimism, urging employees to “hang on to their stock” during a March 2025 all-hands meeting streamed on X. He touted Tesla’s robotaxi launch in Austin, the Cybercab, and the Optimus humanoid robot as future growth drivers, promising a “bright and exciting” future. Yet, his absence from day-to-day operations, noted by Tesla executives and a board member stepping in to fill gaps, undermines this narrative. Musk’s recent media blitz, including interviews and posts about sleeping in factories, suggests an attempt to reclaim focus, but critics see it as too little, too late.

The CEO’s political pivot has compounded the issue. His departure from DOGE was meant to refocus on Tesla, but the Trump feud—sparked by Musk’s opposition to a spending bill cutting EV subsidies—has kept him in the spotlight. Trump’s threat to terminate government contracts with SpaceX and Tesla, worth billions, has added financial pressure. Musk’s retort on X, claiming ingratitude for his 2024 campaign support, has only deepened the divide, leaving investors uncertain about regulatory support for Tesla’s autonomous ambitions.

The Insider’s Perspective: LaBrot’s Journey

LaBrot’s transformation from Tesla advocate to critic offers a unique lens. Hired after a personal interview with Musk in 2019, he thrived in sales, promoting EVs as a sustainability solution. However, Musk’s hands-off style—firing dissenters on the spot, as LaBrot witnessed—clashed with his expectations. The CEO’s political turn, especially his role in slashing federal jobs via DOGE, shifted Tesla’s image from innovator to political lightning rod. LaBrot’s website, launched amid “Tesla Takedown” rallies, marked his breaking point, leading to his dismissal and this public call for Musk’s exit.

His suggestion that Musk sell his 12% Tesla stake, valued at over $50 billion despite the dip, aims to signal a fresh start. LaBrot believes new leadership could rebuild trust, though he admits the damage may be irreversible. This view aligns with posts on X, where some users echo the need for Musk to divest, though others defend his vision, citing SpaceX’s $350 billion valuation as proof of his genius.

Broader Implications: A Brand at a Crossroads

Tesla’s crisis reflects broader tensions in the EV market. Competition from China’s BYD, which overtook Tesla in sales in 2024, and Alphabet’s Waymo in robotaxis has intensified. Musk’s political alignment has cost Tesla its progressive halo, with labor unions and pension funds like New York City’s seeking lawsuits over lost value. The company’s pivot to AI and robotics, while promising, hinges on delivering on overpromised timelines, a pattern LaBrot and others criticize.

The call for Musk to sell shares also raises financial stakes. His pledged shares secure $3.5 billion in loans, and a forced sale could crash the stock further, as Tesla warned in 2022 filings. Yet, LaBrot argues this sacrifice could attract new investors, untainted by Musk’s controversies. The board, led by Robyn Denholm—who cashed out $530 million in stock amid the decline—faces pressure to act, with shareholders demanding a succession plan and Musk’s full-time commitment.

A Deeper Look: Leadership and Legacy

Musk’s leadership style, once a strength, now hampers Tesla. His micromanagement of dissenters, as noted by former mechanic Carl Medlock, and reliance on optimistic forecasts—like the 2016 promise of cross-country autonomy by 2018—have eroded credibility. The board’s deference, criticized in a 2024 Delaware ruling voiding his $56 billion pay package, has left Tesla vulnerable. LaBrot’s insider perspective suggests a cultural shift is needed, beyond Musk’s charisma.

The political fallout with Trump complicates matters. With EV subsidies at risk and tariffs looming, Tesla’s U.S. operations face headwinds. Musk’s China deal for a $2 billion energy storage project, signed post-feud on June 24, shows his global pivot, but it risks alienating American stakeholders. SpaceX’s $22 billion in defense contracts add national security concerns, with critics wary of Chinese data leverage.

Conclusion: A Make-or-Break Moment

Matthew LaBrot’s warning that Elon Musk must step down and sell his shares to save Tesla encapsulates a company at a critical juncture. The former employee’s call reflects a broader sentiment of frustration among staff, investors, and customers, fueled by Musk’s political distractions and unmet promises. While Musk’s vision has driven Tesla to a $1 trillion valuation, its current trajectory suggests a need for change to restore its market standing.

As Tesla navigates this storm, the decision lies with Musk and the board. Will he heed the call to exit, potentially selling shares to stabilize the company, or double down on his leadership? The outcome will shape Tesla’s legacy—whether as a pioneer reborn or a cautionary tale of a brand undone by its founder’s ambition. For now, the world watches as a loyal insider’s plea challenges the billionaire to put Tesla’s survival above his own.