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Tesla would do well to distance themselves from Musk, for a lot of reasons. But it may be too late - the damage to their reputation may already be fatal.
They could definitely bounce back if the board fired him and the new head of the company made changes that actually made the cars better, rather than make the model numbers spell S3XY or have the horn make a fart noise for a premium or make and sell whatever the fuck the ~~Powell Motors Homer~~ Cybertruck is.
The problem is that Elons con man routine is the only reason Tesla is so overvalued. I'm sure they are afraid that if they let him go the stock price would readjust to a reasonable market price.
No matter what you think of him, he is brilliant at conning a tech enthusiast's money out of their wallets.