Elon Musk is facing mounting challenges after stepping away from his role as an advisor to Donald Trump in order to refocus on his struggling electric vehicle company, Tesla.
This shift comes at a critical time, as investor confidence—key to Musk’s status as the world’s richest person—may be slipping.
In a column for The Atlantic, former Jalopnik editor-in-chief Patrick George highlights that it’s not just customers distancing themselves from Tesla due to Musk’s alignment with the increasingly unpopular Trump. A wave of high-level departures—a “brain drain”—has also hit the company, coinciding with Musk’s growing involvement in his so-called Department of Government Efficiency (DOGE).
Tesla is now grappling with falling stock prices, consumer boycotts, and criticism over stalled innovation in its vehicle lineup. According to George, the responsibility for turning things around rests squarely on Musk’s shoulders—yet he may no longer have the leadership team necessary to help him do it.
The Atlantic reports that, “Something similar to DOGE’s steep staffing cuts has been playing out at Tesla. About a third of the executives who appeared onstage with Musk two years ago have since left or been removed. Key figures—including the heads of software engineering, battery technology, and humanoid robotics—have departed just since April. Tens of thousands of regular employees exited amid massive layoffs last year.”
Musk has also hinted at a greater role for artificial intelligence in Tesla’s operations, a move that reportedly accelerated more departures from the company. As George puts it, “His actions might finally be catching up with him.”
He concludes, “Whether Tesla can bounce back will test something even more rare than Musk’s fortune: the faith others place in him. Though Musk has alienated people on both sides of the political spectrum, many still believe fiercely in his ability to make them rich. But even that belief may soon begin to fade.”