Elon Musk has been a major innovator in the field of technology since he was first catapulted into the public eye over 20 years ago. From founding PayPal to leading groundbreaking ventures such as Tesla and SpaceX, Musk has become one of the most impatiently watched tech entrepreneurs on the planet. As he continues to rise, however, a few issues of concern with Musk and his practices are beginning to appear.
For one, Musk has a reputation for ego. He has been publically arrogant on numerous occasions and described himself as a ‘grimy business squirrel’, which to some is an unsettling image of a leader. His self-assured attitude has led to multiple missteps from the Tesla CEO: from bringing on a new CFO without permission in 2018 to lashing out at a journalist in 2019.
Speaking of Tesla, another area of concern has been the tumultuous state of its finances over the past few years. From reports on Model 3 production issues to a drop in its share prices and Moody’s downgrading its debt to junk status, Tesla’s financial situation has been a cause for worry. And while Tesla reported a surprise profit in Q3 of 2019, its underlying workings are still very much in flux.
Musk’s thoughts and words have been called into question, too. He has made numerous grandiose claims, such as his foretelling of the elimination of internal combustion engine vehicles and Tesla’s ability to produce six-million cars in 2021, both of which many international media outlets have downplayed. This has raised a few red flags about the validity of his claims.
Other reports have pointed to worker issues at the Tesla factory. Anti-union talks and reports of dangerous working conditions by its employees have painted a worrying picture of the educational and safety policies that Musk has in place. This is further reinforced by reports of vast numbers of former employees who left Tesla when their contracts expired, further proving Musk’s lack of long-term thinking in this regard.
Environmental Impact
One of the most prominent issues Musk is facing is his stance on the environment. Despite Tesla’s mission statement to build “zero-emission vehicles”, research conducted by the Union of Concerned Scientists revealed that making these cars still consumes a high amount of natural resources due to the extensive use of rare earth elements and battery production. This casts doubts over Musk’s claims of green motoring.
Critics point out that the Tesla CEO’s approach to sustainability pales in comparison to other green-minded companies such as BMW, whose investment in expanding the global charging infrastructure is transforming the way electric vehicles are produced, powered and consumed. To make matters worse, Musk has resorted to extreme tactics such as criticising electric vehicles from his competitors, which has tarnished his reputation in the sustainability space.
Legal Action
Musk’s own investments have been called into question, too. Despite Tesla’s successful entry into autopilot technology, a large portion of its investments rely heavily on government handouts and subsidies to stay afloat. This has led to numerous conflicts with governments, resulting in legal actions being filed against Musk and his companies.
The SEC has been particularly aggressive in its dealings with Tesla, accusing the CEO of market manipulation and warning him repeatedly to address the company’s public disclosure policies. Not only has this resulted in a multi-million dollar settlement against the company, but it also speaks to Musk’s refusal to round-out his statements with more concrete evidence.
Public Perception
Musk’s confrontational approach and tendency to launch volatile attacks has caused some to question his leadership. Though his followers are dedicated, his extreme behavior has prevented Tesla from being taken as seriously as traditional automakers such as Toyota, Volkswagen, and Hyundai, who seemingly take a much more measured approach to their operations.
Added to this is the sense of mistrust that has been created by Musk. His unpredictable nature, bold announcements, and attack-style of communication have left many wondering about the role he really plays in the world of business, and what it truly means for the future of the automotive industry.
Labor Rights
Reports of labor rights abuses at Musk’s factories have been increasingly concerning. Not only have some of his employees reported unsafe working conditions in which they had to operate without protective gear, but multiple reports of workers passing out from exhaustion as a result of long work days have also made headlines. The dire situation has caused wealthy investors to reconsider and call for investigations into the company’s alleged labor abuses.
In response, Musk and Tesla have denied such claims and conducted official investigations of their own. Yet, many workers remain unconvinced, citing their employers’ failure to provide sufficient data or commit to real change as proof that the automaker is avoiding its responsibility to protect the basic rights of its employees.
Safety Regulations
If safety concerns were not enough, there are other Musk driven issues popping up. In various countries, Musk has gone against regulations and pushed the limits of what is legal.
For example, his push for the reopening of Tesla’s plant in California without officially obtaining permission from authorities was widely criticized. And a U.S. House of Representatives Committee called him out for Tesla’s apparent failure to report certain car safety issues in a timely manner.
These occurrences demonstrate that Musk is not at all fearful of engaging in a certain level of risk-taking for his own interests. To some, this is a cause for greater concern, as time and time again, Musk has proven himself to be willing to go against what is legally mandated in order to pursue his own visions.
Culture Within the Company
In addition to government regulation issues, there have been reports of a negative culture within Tesla. Former employees have come out to speak about the oppressive working environment that the company provides, with the long hours and poor pay combined with the lack of communication causing fatigue.
Critics argue that Musk’s attitude only serves to compound this problem, with his ego-driven mindset creating a divide between himself and his employees, preventing meaningful dialogue and open understanding. Added to this is the lack of accountability which results in Musk making decisions without properly considering the opinions of those he is responsible for.
Publicity Stunts
Musk has a tendency for showy publicity stunts, most recently with his plan to launch a Tesla car into space. The red car stunt was widely seen as a waste of resources, especially in light of the more pressing issues that Tesla is currently dealing with.
The stunt has been seen as an indication of Musk’s approach to corporate responsibility, with some seeing it as yet another example of Musk’s lack of commitment to addressing the more serious issues within his business. The act was also damning proof that Musk will go to great lengths to gain attention, even if it’s not always positive.
Pressuring Government
Finally, there are reports of Musk’s attempts to influence governments in order to further his own interests. Numerous stories have emerged regarding his efforts to pressure state and federal officials, most recently in Nevada, when he sought to influence lawmakers to approve tax breaks for Tesla, a move that would have enabled Musk to expand his venture in the Silver State.
This has caused some to question Musk’s ethics, with many worrying that his privileged position allows him to get away with any and all of his requests. This in turn has resulted in a growing sense of unease, with some questioning whether his business-first attitude is detrimental to the greater good.
