If the electric car maker's stock doesn't start to turn around, Alex Stamos, a former Facebook security chief, warned that activist investors could start buying up the stock.
Sometimes activist investors buy stakes in public companies and then try to change them.
"If it continues to drop hard, then you're going to end up with activist investors getting in, and those activist investors are going to push to get onto the board and then to put pressure on Musk," Stamos said.
Stamos said that if an activist comes along, they could be the brake on Musk's behavior. Stamos said that it might be the thing that slaps him in the face if he doesn't do it.
Insider had a request for comment from Musk and aTesla, but they didn't reply. Previously, Stamos was the Chief Information Security Officer at Yahoo. He was against the idea of an activist investor trying to oust a founder of a company.
Stamos made the comments after Musk made a number of erratic statements on the social media platform. Stamos didn't reply before publication.
Over the past week, shares of the electric car maker have fallen to their lowest level in more than a year. The electric-car maker's stock has fallen more than 60 percent this year due to falling demand from China and Musk's preoccupation with social media.
Last week, some investors expressed concern that the carmaker's CEO was becoming too distracted by the social networking site. In the past 14 months, Musk has sold more than 40 billion shares of his company's stock. The stock of the electric car maker was trading over $150 a share.
There are other warnings that Musk could face. The shareholder called for a new CEO to take the company over. As of September, KoGuan had over 20 millionTesla shares. It's not known how he spends his wealth, but he has made donations to Chinese universities in the past.
He said in an interview with Forbes that he was a fan of Elon.
He said that an executioner like Tim Cook was needed. An executive like the Apple CEO, who is known as a quiet operations genius, would be a better fit according to KoGuan.
In a research note on Monday, Dan Ives said that the company is likely to face increased pressure from activist investors in the years to come to launch a stock buyback program, improve profit margins, or make strategic moves. He has been critical of Musk's preoccupation with social media. The tech analyst maintained his outperform rating on the stock because of his optimism about the future of the EV industry.
William Klepper, a management professor who teaches an executive leadership course at Columbia Business School, told Insider that if the board doesn't step up and bring Musk's focus back to the company, the company will be in trouble.
Klepper said that the market is talking to the board. It's easy as that.
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