Elon Musk. © Michael Key
Tesla’s TSLA -4.75% ▼ 2025 has been forgettable, to say the least.
Deliveries dropped hard in Q2, tanking nearly 14% year-over-year, marking Tesla’s worst quarterly sales drop in over a decade.
Also, the U.S. EV market share dropped to 38% in August, the first time it has fallen below 40% since 2017, with legacy automakers and new players closing in.
Moreover, the stock has been on a rollercoaster.
After its market cap peaked near $1.24 trillion in February, Tesla’s market cap plunged to $916 billion by March, erasing a whopping $300 billion in value before clawing back. Also, shares remain flat year-to-date, lagging broader market gains in the tech space.
Then there’s the incredible reputational damage. Political firestorms, product delays, and a stream of high-level exits continue to test investor patience.
Now, another senior executive is out, and his exit has been far from quiet. His blunt criticism of leadership sharpens concerns that Tesla’s challenges aren’t just cyclical, but also structural.
Tesla’s leadership churn just had another spotlight moment.
Senior engineer Giorgio Balestrieri, who joined the EV pioneer in 2017 and was involved in its Autobidder energy-trading platform, announced his departure on LinkedIn this week, putting Elon Musk squarely at the center of it.
Balestrieri wrote on LinkedIn:
“All this being said, I do need to address the elephant in the room: The main reason I’m leaving is that I think Elon has dealt huge damage to Tesla’s mission (and to the health of democratic institutions in several countries).
“Beyond that, Elon’s leadership and decision making seem seriously compromised. Given his huge (and growing, inexplicably) stake in Tesla, I can’t convince myself anymore that this is the right place to be.”
For context, after his stake dipped to 12.7% to 13% post-Twitter sales, Tesla’s August stock award of a whopping $29 billion could lift his holding to over 15%.
Additionally, the board also floated a “$1 trillion” performance package, which could potentially boost his voting power toward 25% over time.
Tesla’s stock has weathered a ton of criticism from Musk, but steady departures of long-tenured engineers raise a ton of questions for investors.
Leadership credibility matters critically in advanced energy platforms, and when insiders question it, the cost of capital and talent retention become major long-term issues.
The Balestrieri departure isn’t an isolated event.
Over the past year, we’ve seen at least eight senior leaders walk, spanning sales, software, robotics, and service.
Some of the recent high-profile exits over the past 12 months include:
Also notable in 2025 were key exits of personnel such as Vineet Mehta in batteries, David Imai in design, and Pete Bannon, who led Tesla’s Dojo supercomputer project.
These developments should be troubling for Tesla investors, as this isn’t just about swapping nameplates. It involves losing institutional memory across sales, service, and next-gen platforms.
In markets where talent and trust are paramount, frequent senior departures slow recruiting flywheels, denting a company’s reputation in the process.
These effects rarely show up in a single quarter, but are likely to compound over time in valuation multiples.
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