Elon Musk's Fitness To Lead Tesla Questioned Amid 'Nazi Salute' Controversy

Tesla's fourth-quarter earnings report is set to release, and investors are eager to know how Elon Musk's involvement in politics will impact the company's growth and profitability. With Musk's high-profile advisory role in Washington, D.C., and his endorsement of far-right candidates, shareholders are questioning whether he's providing Tesla the focus it needs.

Over 100 investor inquiries have poured in, asking about Musk's time allocation between Tesla and his political engagements. One retail investor asked, "How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities?" Another top-voted question asked how much time Musk intends to spend "at the White House and on government activities vs time and effort dedicated to Tesla."

Musk's political involvement has been extensive, including contributing $270 million to Trump and other Republican candidates and causes. He also spent weeks on the campaign trail during the fourth quarter and later at Trump's Mar-a-Lago resort in Florida. Additionally, Musk has involved himself in German politics, endorsing the far-right AfD party.

According to Brand Finance, Tesla's brand value fell by 26% last year, citing factors such as Musk's "antagonism" and Tesla's aging lineup of EVs. The researchers found that fewer consumers would recommend or consider buying a Tesla now than in previous years.

Musk's recent gesture, viewed by many as a Nazi salute, has also sparked controversy. Ruth Ben-Ghiat described it as "a Nazi salute and a very belligerent one," while neo-Nazis praised Musk for his antics. A shareholder asked Musk to apologise for the misunderstanding, "Will you apologise for the misunderstanding that occurred when you made the hand gesture thanking folks for their support. It would go a long way with your investors and the American public at large. Thanking you in advance Elon!", but he responded by calling the criticism a "hoax."

Musk later engaged in Nazi-themed word play on X, prompting the Anti-Defamation League to rebuke him.

Investors are now seeking answers on how Tesla plans to address the negative impacts of Musk's public views and activities. However, Tesla is under no obligation to discuss these topics during the earnings call. The company's fourth-quarter earnings report is expected to include updates on its production and delivery numbers, as well as its energy storage deployments.