Tesla Turmoil: Is Elon Musk’s Exit Looming?

Tesla’s stock tumbles as boardroom tensions reach boiling point. The electric vehicle pioneer faces its biggest leadership crisis since the Cybertruck’s window debacle.

Behind the scenes: Whispers of investor unrest grow louder. Some major shareholders now openly question whether Musk’s divided attention (SpaceX, Twitter, xAI) is hurting Tesla’s bottom line.

Market impact: TSLA shorts are having their best week since 2018 - though let’s be honest, betting against Musk has historically been a great way to fund his next rocket.

The big question: Can Tesla’s board navigate this storm without its celebrity CEO? Or will shareholders finally demand what Wall Street’s wanted for years - a boring car executive who shows up to earnings calls sober?

In Brief

• Tesla sales have plunged heavily in Europe and the United States since early 2025.
• Musk’s divisive political image worsens the disenchantment of a historically Democratic clientele.
• The board denies any ousting, but the possibility of a departure is seriously circulating.
• A Musk departure could cause Tesla’s valuation to drop up to 25%, according to Gary Black.

Tesla Against the Wall: Sales Drop and Political Rejection

Tesla is going through. In April, sales fell by. In the rest of Europe,, according to ACEA. At the same time, the electric car market grew by 24%. Thisillustrates the slump. In the United States, the figures are no more reassuring: profits fell by 71% in the first quarter.

This underperformance has a political dimension. Elon Musk has become the. He heads DOGE, the government efficiency agency. His positions against transgender people or in favor of budget cuts earn him strong criticism. Many Democrats, historic Tesla voters, are turning away.

“Elon Musk is more unpopular than Trump“, emphasizes Jérôme Viala-Godefroy, a United States expert.

The brand, once seen as innovative and green, now faces protests and vandalism. Investors worry. They seethan industrial strategy. The dispersed leadership doctrine shows its limits. And while management talks about “a change in political sensitivities“, order books are thinning.

Tesla is losing ground at the moment whenare gaining ground in the electric segment. The pioneer advantage is no longer enough. Musk may be paying the price for his ideological battles.

A Weakened CEO: Denials Are No Longer Enough

On May 1, the Wall Street Journal revealed that. The article cites several internal sources. It mentions contacts with recruiting firms. The board is said to be tired of the time Musk devotes to DOGE.

On X, the response was immediate. Elon Musk denounced an “extremely serious ethical breach“. Robyn Denholm, chairwoman of the board, supported him:

The CEO of Tesla is Elon Musk… the board is confident.

Tesla Owners Silicon Valley also defended Musk while calling for more transparency.

But the speculation does not stop. The damage is done. Several analysts believe that. “If Musk were to completely leave Tesla, the stock could drop 20 to 25%“, estimates Gary Black. Even a partial withdrawal would cause a 5 to 10% drop.

This scenario shows how, but also how vulnerable he has become. The board might seek to limit his role without overthrowing him. Behind the scenes, some members would prefer. Several investors fear a new governance crisis.

Musk’s announced full-time return does not dispel worries. Especially since it might only be tactical, to defuse an internal revolt.

The Empire Trembles: Negative Figures and Strategic Fatigue

Tesla’s difficulties are reflected in the numbers:

• 60% sales lost in France in April;
• 71% profit drop in Q1 2025;
• 28% sales decline in Europe;
• 13% revenue lost year-over-year;
• Possible 25% stock drop if Musk leaves.

These numbers are alarming. They reflectElon Musk, while remaining central, sometimes seems isolated. His long-term projects, such as robotaxis or onboard AI, remain vague. The market no longer takes his word for it. It wants results.

Competitors, meanwhile, deliver affordable and reliable vehicles. Tesla, positioned at the high end, hits a. The segment is too narrow. The initial promise of an accessible green revolution has turned into an elitist product.

Investors know it.Tesla can no longer afford strategic hesitation. Musk’s management divides. His communication choices, his dependence on social media, his politicization, worry.

Added to this are lawsuits, disputes, and pressure from the Chinese market. For some shareholders,.

While Warren Buffett leaves with elegance, wealth, and recognition, Elon Musk might leave Tesla with a bang, contested, weakened, and an economic record more than fragile. Two visions of leadership, two legacies. One inspires confidence, the other provokes controversy. If Musk leaves, he will have to do so without panic. When the time comes, without a tweet. Without flair. And without leaving Tesla on the edge of the cliff.

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