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This Week’s Case: Tesla in Europe: Does the Board Know Something We Don’t?

Tesla's sales in Europe are dropping—nearly 60% in Germany, 63% in France, 38% in Norway, and 44% in Sweden. Meanwhile, the European EV market is growing. Other automakers are expanding their presence while Tesla’s CEO, Elon Musk, is making headlines for political endorsements that may not sit well with European consumers.

So, what’s the Board’s role in all of this? Are Tesla’s directors questioning whether these factors are affecting the company’s market position? Are they concerned about Musk’s influence on brand perception, or is Europe no longer a strategic priority? More importantly, does the Board know something we don’t?

In an era where governance needs to focus on external risks as much as financials, Boards must challenge leadership when business performance and reputation are at stake.

01. Map:

Have Tesla’s Board members evaluated how Trust Pillars in Europe—consumer confidence, regulatory alignment, and market competitiveness—are being impacted by leadership decisions?

02. Execute:

Is the Board ensuring that Tesla’s governance structure and executive oversight align Trust Pillars with the company’s long-term strategic goals in Europe?

03. Measure:

What KPIs are being used to assess whether Trust Pillars—such as brand reputation, political neutrality, and leadership credibility—are affecting Tesla’s market share in Europe?

04. Optimize:

How is Tesla’s Board adapting governance strategies to ensure Trust Pillars remain strong while balancing Musk’s leadership style, market expectations, and shareholder interests?

Trust Pillars are the core values and strategies that align your company’s objectives with stakeholder expectations, ensuring transparency and accountability.

Trust is the currency of sustainable business—lose it, and the cost is more than financial.

Benchmarks:

• Apple’s European Market Strategy: How Apple maintains consumer trust despite regulatory and market challenges.
• Volkswagen’s Dieselgate Crisis: A case study on the cost of reputational damage and governance blind spots.
• Microsoft’s Governance Adjustments: Lessons from how Microsoft’s Board aligned leadership actions with global market priorities

What’s your take? Should Tesla’s Board challenge Musk’s approach in Europe or trust the long-term strategy? Hit reply and share your thoughts.

Gui Athia—Mentor, Keynote Speaker, and Advisor. Author of Get the M.E.M.O.

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