Tesla Employee Fired After Letter Urging Elon Musk to Resign Amid Sales Decline

Tesla has been grappling with significant challenges in recent months, including declining sales, major recalls, and a volatile stock price. A notable development is the firing of Matthew LaBrot, a Tesla employee who created the website Tesla Employees Against Elon Musk and was part of a group publicly calling for Elon Musk's resignation.

LaBrot, who worked in Sales and Delivery Training for over five years, claimed his termination was directly related to his activism against Musk's leadership. This internal dissent highlights growing unrest within Tesla as the company faces its first sales decline in over a decade, with a 13% drop in Q1 2025 and even steeper declines in European markets like Germany and France.

Tesla attributes the sales slump to supply issues with the new Model Y, its best-selling vehicle. However, the employees behind the letter, signing as Tesla Employees for a New Chapter, argue that the problem lies not with production but with Elon Musk's polarizing public image and political activities.

The group stated, “We are not the problem. Our products are not the problem. Our engineering, service, and delivery teams are not the problem. The problem is demand. The problem is Elon.” This sentiment echoes Tesla's own acknowledgment that “unwanted hostility towards our brand and our people” has negatively impacted sales in certain markets.

Expert analysis links Tesla's struggles to Musk's deepening involvement in right-wing politics, including a $288 million donation to Republican candidates and his role as a special advisor in the Department of Government Efficiency (DOGE). These political activities have sparked grassroots protests, such as the Tesla Takedown movement, targeting Tesla showrooms and charging stations.

The company's stock price has reflected these challenges, plunging 38% since early 2025. In response to investor pressure, Musk announced he would reduce his political engagements to focus more on Tesla. However, employees criticized this move as “tone-deaf” and “insulting,” arguing it unfairly shifts blame onto Tesla's workforce rather than Musk's actions.

This episode underscores the complex interplay between corporate leadership, public perception, and business performance in the tech industry. Tesla's experience reveals how a CEO's external activities and reputation can materially affect demand and employee morale, highlighting the importance of cohesive leadership aligned with company values and market expectations.

For tech companies and leaders, this situation offers critical lessons on managing brand reputation, employee engagement, and investor relations amid political and social controversies. It also illustrates the potential consequences when internal dissent becomes public and the delicate balance required to maintain stakeholder trust.