Mr. Musk may also lose sway over federal regulators who could make or break his plans to deploy driverless taxis, which he has described as the future of the company. Tesla is already suffering steep declines in sales and profit.

Key Takeaways Tesla is expected to launch its autonomous ride hailing service later this month, perhaps as soon as this week.The company has yet to confirm or deny a report from Bloomberg that it is targeting a June 12 launch for the robotaxi.