{"id":7456,"date":"2025-09-10T11:22:07","date_gmt":"2025-09-10T11:22:07","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=7456"},"modified":"2025-09-10T15:24:19","modified_gmt":"2025-09-10T15:24:19","slug":"this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\/","title":{"rendered":"This Theory May Explain Why Elon Musk Is Willing to Damage Tesla"},"content":{"rendered":"

By Nick Keppler<\/a><\/p>\n

Even as demand for electric vehicles rises, Telsa is losing ground. In the first quarter of 2025, the company sold nine percent fewer vehicles<\/a> than it did in the first quarter of 2024. The second quarter was even worse; sales dropped 13.5%<\/a> from the previous year. The company\u2019s stock prices<\/a> have wavered but never returned to their December 2024 peak.<\/p>\n

Some analysts have pointed to factors such as increased competition from other electric vehicles brands, but few deny that a glaring problem is the high-profile political activity of Elon Musk, the CEO, self-proclaimed \u201cTechnoking,\u201d and face of the company.<\/p>\n

Musk took over as Tesla CEO in 2008. Since then, Tesla stakeholders have endured his combative streak, impulsive social-media usage, and multitasking as the head of other companies. But over a year-plus that defies concise summary, he has alienated large segments of potential Tesla buyers\u2014first as the largest financial contributor to the presential campaign of Donald Trump and then as the unofficial de facto head of the president\u2019s Department of Government Efficiency (DOGE). More recently, Musk has reemerged as a disillusioned Trump critic, lambasting the president on X.com and vowing to start his own political party. Even longtime Tesla defenders<\/a> worry about its damaged brand and distracted CEO.<\/p>\n

Musk\u2019s seeming neglect of Tesla can be explained\u2014to an extent\u2014through social identity theory, said Academy of Management Scholar Marc Gruber<\/a> of the \u00c9cole Polytechnique F\u00e9d\u00e9rale de Lausanne. Musk fits into the missionary identity type, a kind of entrepreneur that primarily sees their business ventures as ways to instigate social change.<\/p>\n

\u201cHe wants to change the world towards electric vehicles to save the planet that way, and even if others copy what he’s doing, that\u2019s great for him, because even more people will drive electric vehicles,\u201d Gruber said.<\/p>\n

In a 2018 interview on CBS\u2019s 60 Minutes, Musk said<\/a> that \u201cthe whole point of Tesla is to accelerate the advent of electric vehicles and sustainable transport.\u201d He added, \u201cIf somebody comes and makes a better electric car than Tesla, and it\u2019s so much better than ours that we can\u2019t sell our cars and we go bankrupt, I still think that\u2019s a good thing for the world.\u201d<\/p>\n

Rare is the CEO who daydreams or talks about his own company\u2019s bankruptcy, but Gruber said that profit has not been the main driver for Musk, whose SpaceX seeks to take humanity into space and other planets and whose purchase of Twitter and rebranding it as X seeks to redefine the public square and influence discourse. Even if some of Musk\u2019s views and his intensity about politics are a relatively new<\/a> phase for him, he has always seen himself as a missionary of sorts and puts ideals ahead of the financial health of any company, and that explains \u201cthe way he moved to the government and neglected Tesla for a while.\u201d<\/p>\n

Musk is also a unique figure who defies clear classification, said Gruber, and it\u2019s easy to put vision over profit when your net worth is more than $400 billion.<\/p>\n

\u201cHe has significant wealth besides Tesla\u2014he doesn\u2019t have to worry about his private fortune anymore,\u201d Gruber said. \u201cIf he wouldn\u2019t be that shielded with all of his wealth, would he still only talk about the mission?<\/p>\n

\u201cHe\u2019s a bit mysterious in that sense\u2026and we do not have another poor Musk to compare him to!\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Nick Keppler Even as demand for electric vehicles rises, Telsa is losing ground. In the first quarter of 2025, the company sold nine percent fewer vehicles than it did in the first quarter of 2024. The second quarter was even worse; sales dropped 13.5% from the previous year. The company\u2019s stock prices have wavered […]<\/p>\n","protected":false},"author":12,"featured_media":7457,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27,22,75,19,342],"tags":[],"sp_smart_badges":[],"ppma_author":[840],"class_list":["post-7456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-c-suite","category-entrepreneurship","category-investors","category-leadership","category-technology"],"acf":[],"yoast_head":"\nThis Theory May Explain Why Elon Musk Is Willing to Damage Tesla - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nick Keppler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/\"},\"author\":{\"name\":\"Nick Keppler\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/1b8aff6a6e3f22d0d813c97e6aab7149\"},\"headline\":\"This Theory May Explain Why Elon Musk Is Willing to Damage Tesla\",\"datePublished\":\"2025-09-10T11:22:07+00:00\",\"dateModified\":\"2025-09-10T15:24:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/\"},\"wordCount\":585,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/08\\\/d7a37c1e-01a0-449d-8ed8-bfe0c0d5a809.webp\",\"articleSection\":[\"C-SUITE\",\"ENTREPRENEURSHIP\",\"INVESTORS\",\"LEADERSHIP\",\"TECHNOLOGY\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/this-theory-may-explain-why-elon-musk-is-willing-to-damage-tesla\\\/\",\"name\":\"This Theory May Explain Why Elon Musk Is Willing to Damage Tesla - 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In the first quarter of 2025, the company sold nine percent fewer vehicles than it did in the first quarter of 2024. The second quarter was even worse; sales dropped 13.5% from the previous year. The company\u2019s stock prices have wavered…","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/7456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=7456"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/7456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/7457"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=7456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=7456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=7456"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=7456"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=7456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}