Entering 2024, Tesla faces challenges as their share price declined to 37% down to April. Mint also reported that Tesla’s market value drops below 500 billion USD. Tesla’s shareholders and critics also drop a heavy weight to Tesla and their CEO shoulders, Elon Musk. How can they receive this amount of backlash? More than a mere prediction and opinions, Tesla’s declining stock price obviously reveals its failure in strategies and decision-making in competing with other key players in the tech and electric vehicle market. Elon Musk himself, a visionary leader known for pushing boundaries, began to whisper about his relentless ambition being a double-edged sword. Elon’s ambition would later become a place where deprioritization, lay offs, and share price collapse grew wider. Tesla’s strategy in developing a cheaper version of electric vehicle was an excitement and huge compass to further grow its company value and success. In spite of Musk’s ambitions in developing automation such as self-driving cars and robotaxis, it is said to be far in length nor can be shaped to reality. His ideas pose a risk to deprioritization, also external and internal issues existing in the remaining portion of Tesla. Not having a main priority of development doesn’t make sense, as the dynamic market demands the first idea of cheap electric vehicles with Tesla level of quality. Musk’s idea of a cyber truck also shows Tesla’s inability to meet the customers needs, leading its users retention and loyalty to other competitors. Critics also scrutinize Musk's ambition to be too ‘political’ after he tried to save his company by expanding to the Chinese market, as recorded in the New York Times. Another concern regards to Tesla’s internal clash where employees didn’t see Musk’s vision the same way they did before. It may have propelled Tesla to the forefront of the EV revolution in 20 years or so, but troubles still linger right now. Just recently from Business Insider, Tesla lays off its employees for the fourth time in a month. Elon Musk seems to replace his employees with automation or AIs, thus underestimating humanized results in its products. It may also seem like a cost-cutting initiative but Tesla won’t solve its slow demand problems by saying goodbye to employees, even executives. Thus, their profit significantly cuts in half, while Musk stays winning on votes over the company’s decision maker. Leader’s ambition might hurt the business, is this a risk worth taking? Talking about Tesla’s case, an important argument can be made about a founder or leader’s decision that is possible to shake up the business and produce risks, threatening the sustainability of the company. In the context of startups, it is clear that founders who embrace risks can short-live or soar its company towards its goals. This is surely a gambling situation which requires collective action and sufficient resources for startups to maintain their position in their industry. Therefore, a cost and benefit analysis between a founder’s personal vision on the company and the reactive risks it may have will become essential. If the risks turn out to be smaller than the positive growth its founder’s ambition brings, it must be one decision to take. Nonetheless, it is up to the decision makers to stay rational in determining the future of the startup. Only time will tell if Tesla can navigate the tightrope between audacious goals and focused execution. One thing is for certain: the coming years will be a thrilling ride for Tesla, its competitors, and the electric vehicle revolution itself. Regardless, since Elon Musk's ambition was undoubtedly the spark that ignited Tesla's rise, could it also be the force that extinguishes its flame? Would you take the same risk if you’re in the same boat as Tesla? Source: - Business Insider: Tesla sends out another wave of layoff notices as employees enter 4th week of job cuts - Mint: Tesla share price falls 37% in 2024 as Elon Musk’s EV maker suffers demand slowdown; market value drops below $500 bn - New York Times: How Tesla Planted the Seeds for Its Potential Downfall - The Street: Tesla crash continues as Musk doubles down on 'blindingly obvious' strategy