Elon Musk faces mass exit of top executives from business enterprises

 October 3, 2025

In a striking blow to Elon Musk's sprawling business empire, a wave of senior executives has departed from his companies over the past year, raising concerns about the future of his ventures, as Breitbart reports.

This exodus, primarily affecting Tesla and xAI, stems from Musk's demanding management approach, shifting strategic priorities, and growing staff disillusionment, threatening the stability of his enterprises at a critical juncture.

Over the past 12 months, numerous high-ranking leaders have left Musk's businesses, with significant turnover reported by the Financial Times at both Tesla, the electric vehicle giant, and xAI, his artificial intelligence startup.

Key departures shake core teams

At Tesla, recent exits include vital members of the U.S. sales team, as well as leaders in battery and powertrain operations.

Additionally, the public affairs division and the chief information officer have also parted ways with the company.

Even Tesla's Optimus robot and AI development teams, crucial to Musk's vision for the future, have lost several core members during this period.

xAI faces leadership turnover

Meanwhile, xAI, founded by Musk just two years ago and recently integrated with his social platform X, has seen even swifter changes in its leadership ranks.

Both the chief financial officer and general counsel resigned within days of each other after brief tenures at the company.

Igor Babuschkin, a co-founder and chief engineer at xAI, also stepped away from the firm last month, marking a significant loss for the startup.

Behind the exits: Burnout, discontent

While some executives have moved on to new opportunities or taken personal breaks, many departures are linked to deeper issues within Musk's organizations.

Interviews with over a dozen current and former employees reveal burnout from Musk's intense work culture, which often demands 80 to 120-hour workweeks with minimal time off.

Discontent with Musk's political stances and public controversies has also played a role in driving talent away from his companies.

Strategic shifts fuel internal tensions

At Tesla, strategic disagreements have contributed to the unrest, particularly as Musk has redirected focus and resources from electric vehicles to ambitious projects like humanoid robots and artificial general intelligence.

Plans for a much-anticipated $25,000 entry-level EV model have been abandoned, while critical powertrain and charging infrastructure initiatives have been pushed to the back burner.

As one recently departed Tesla veteran stated, "Elon’s behavior is affecting morale, retention, and recruitment. It went from a position where people of all stripes liked him to only appealing to a certain section."

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