A 35-year-old Tesla employee, Matthew Labrot, has been terminated from his position at the company. The reason behind this decision is reportedly due to Labrot’s creation of a website criticizing Tesla’s CEO, Elon Musk.
Background
Labrot, who was in a management role and trained Tesla sales employees, set up a website called “Tesla Employees Against Elon.” This website was an open letter to the company, urging them to replace Musk as CEO. Labrot’s doubts about Musk began to grow after the billionaire’s acquisition of Twitter and his support for the Trump campaign in the run-up to the presidential election.
The Turning Point
A turning point for Labrot came when Musk allegedly performed a Nazi salute at an event for U.S. President Donald Trump. This incident, along with Musk’s political views, affected Tesla sales on the ground, with customers abandoning the brand. Labrot also felt that Tesla’s leadership did not provide sufficient guidance to employees on how to handle protests and vandalism against the company.
Protest and Termination
Labrot took his protest a step further by spray-painting his Cybertruck with anti-Musk messages. However, this act led to his termination from the company, with Tesla citing the use of company resources to build a website that did not align with the company’s perspective. Labrot denies this claim and has continued to attend Tesla protests.
Impact on Tesla
Tesla has been facing a difficult quarter, with a 71% plunge in year-over-year profits and dwindling sales in both the U.S. and Europe. The company has tried various strategies to appeal to a wider audience, including promising affordable models, rebranding, and pivoting marketing strategies. However, the company’s inventory is piling up, with over 10,000 unsold Cybertrucks in the U.S. inventory.
Price Action
Despite the challenges, Tesla’s stock price gained 3.11% at market close, trading at $284.82.
Conclusion
The termination of Labrot’s employment highlights the challenges faced by Tesla, both internally and externally. The company’s struggles to appeal to a wider audience, combined with the controversy surrounding Musk’s political views, have affected Tesla owners and the company’s overall performance. As the company continues to navigate these challenges, it remains to be seen how they will impact Tesla’s future success.