Key Points
- Steve Westly emphasized the need for Elon Musk to focus more on Tesla and compared Musk’s focus unfavorably to Nvidia’s CEO, Jensen Huang.
- Tesla recently reported its largest quarterly revenue decline since 2012 and announced a significant reduction in staff.
- Concerns arise from Musk’s multiple commitments at other ventures. Tesla plans to introduce a $25,000 low-cost model by early 2025.
- The EV industry faces increased competition and a trade dispute between the U.S. and China, with President Biden imposing new tariffs.
At a pivotal moment for the electric vehicle (EV) industry, Tesla could benefit from increased attention from its high-profile CEO, Elon Musk, according to former board member Steve Westly. Speaking at the annual VivaTech conference in Paris, Westly emphasized the importance of a CEO’s focus, suggesting that Musk’s divided attention might impact Tesla’s performance.
Westly, managing director of venture capital firm The Westly Group and an early Tesla investor, attributed part of Tesla’s recent struggles to Musk’s waning focus, comparing Musk’s leadership to Nvidia’s CEO, Jensen Huang. “Jensen Huang is arguably the greatest CEO right now, consistently delivering superior results. Focus is the key. Tesla could use more of it,” said Westly.
Tesla recently disappointed investors with its biggest quarterly revenue decline since 2012, further exacerbating concerns about Musk’s leadership. The company also announced a more than 10% reduction in staff headcount, adding to a series of distractions for the serial entrepreneur.
Musk’s multiple commitments at other ventures, including SpaceX, X, Neuralink, and The Boring Company, have raised questions about his capacity to lead Tesla effectively. According to Westly, a recent revenue miss heightened these concerns, suggesting the company has “lost ground.” He noted that Musk’s leadership style and focus are ultimately for the board to evaluate.
Despite these challenges, Westly highlighted Tesla’s potential to innovate in a competitive market, pointing to the announcement of a $25,000 low-cost Tesla model expected to launch by early 2025. “Don’t bet against Musk; he’s got a pretty good track record,” Westly remarked.
Tesla’s recent setbacks come at a critical time for the EV industry, which faces increased competition and a growing trade dispute between the United States and China. Last week, U.S. President Joe Biden imposed 100% tariffs on Chinese electric vehicles, effective this year, to prevent China from “dumping” cheap products into the American market.
Westly’s comments underscore the broader challenges Tesla faces as it navigates these industry dynamics. While Musk’s vision and track record remain significant assets, the company’s future success may hinge on his ability to prioritize Tesla amidst his numerous ventures.
