Unless you live on Mars—Elon Musk’s favorite planet—you’ve probably noticed something: over the last six to eight months, the world’s richest man has become a major liability for Tesla.

Since the start of the year, Tesla has lost more than $350 billion in market value. Worse, the electric carmaker has become entangled in the political chaos surrounding its increasingly controversial CEO.

Every time Musk picks a fight online—most recently with former ally Donald Trump—Tesla investors hold their breath. Retail shareholders, in particular, are left hoping the fallout won’t tank the stock any further. But their prayers are going unanswered.

Some investors have looked to the board of directors for a check on Musk’s behavior. But Tesla isn’t a traditional company, and its board has proven largely ineffective. Musk himself sits on the board, along with his brother Kimbal, and several others with deep personal or business ties to him.

James Murdoch, for instance, is part of Musk’s inner circle. During Musk’s 2022 battle to buy Twitter, private court documents revealed that Murdoch and his wife were among those Musk confided in. JB Straubel, another board member, co-founded Tesla. Joe Gebbia, co-founder of Airbnb, joined Musk’s controversial Department of Government Efficiency (DOGE). Ira Ehrenpreis was an early investor in Tesla, SpaceX, and The Boring Company.

As former Tesla investor Ross Gerber put it on X: “There is no Tesla BOD. It’s a joke. They are Elon vampires sucking the blood of Tesla equity. They will do and say nothing.”

There is no tesla BOD. It’s a joke. They are Elon vampires sucking the blood of tesla equity. They will do and say nothing. No one wants the Elon First party. No one.

— Ross Gerber (@GerberKawasaki) July 7, 2025

Back in December 2022, when Musk’s $44 billion Twitter takeover tanked Tesla’s stock, Gerber again blasted the board: “Elon has now erased $600 billion of Tesla wealth and still nothing from the Tesla BOD. It’s wholly unacceptable.”

Elon has now erased $600 bil of tesla wealth and still nothing from the Tesla BOD. It’s wholly unacceptable. $tsla

— Ross Gerber (@GerberKawasaki) December 16, 2022

Musk doesn’t have to leave Tesla entirely. His vision still gives the company an edge. But it’s time for him to relinquish the CEO title, if only to insulate Tesla from the chaos of his personal and political battles.

The “Musk mystique” still holds weight. When he announced the soft launch of Tesla’s robotaxi service in Austin last month, the market reacted with wild optimism, even though the premiere involved just a few hand-picked superfans and required a human monitor in the passenger seat. Experts briefly forgot that Google’s Waymo has been leading in autonomous vehicles for years. That’s the power of Musk.

But here’s the truth: Musk no longer seems interested in building cars.

Tesla hasn’t launched a brand-new model in years. The Cybertruck, its most recent release, is widely considered a flop. Musk is focused elsewhere: on Optimus, the humanoid robot, and on Tesla’s software ambitions like Full Self-Driving (FSD) and robotics.

Yes, these are important areas for Tesla’s future. But right now, the company needs to deliver real products in a highly competitive EV market. GM, BYD, and a wave of Chinese automakers are flooding the field with fresh, affordable models. Tesla’s once-blazing star is dimming.

Meanwhile, Musk is consumed by politics.

He helped bankroll Donald Trump’s return to the White House with nearly $290 million in spending. Then he had a very public falling out with Trump. Now, he’s attempting to launch his own political movement—the America Party—while lobbing policy bombs at both Republicans and Democrats. He’s trying to influence everything from electric vehicle mandates to NASA leadership.

It’s clear that this political obsession isn’t temporary. It amuses him. It gives him power. It scratches the itch of global influence. But it also puts Tesla shareholders in the crossfire. It’s a pipe dream to think Musk will abandon his political ambitions; it’s a game he clearly enjoys playing. The sooner Tesla and its beleaguered investors accept this reality, the better it will be for their wallets.

There’s no reason Musk can’t continue to shape Tesla’s vision. But the company needs a CEO who’s focused on building cars, not building a political party. Musk can remain as Chief Product Architect or visionary founder, but it’s time for him to abandon the CEO title and let someone else steer the ship.

Until that happens, the real risk to Tesla won’t be from competitors. It’ll be from the man who built it.