Elon Musk faces wave of top executive departures at Tesla, xAI and X as burnout, layoffs and politics fuel exits

Elon Musk's sprawling business empire is seeing a wave of senior departures. Financial Times spoke with over a dozen current and former employees who say relentless work hours and political friction are driving exits. Key figures in Tesla’s US sales, battery and power-train units, public affairs, and CIO role have all left. Core members of the Optimus robotics and AI teams, central to Musk’s vision, have also moved on.

At xAI, Musk’s two-year-old AI start-up merged with X in March, and the churn has been faster. Its CFO and general counsel quit within a week of each other after short stints.

Some departures were voluntary after long service, for start-ups or personal breaks. But a noticeable number left citing burnout or dissatisfaction with Musk’s strategic shifts, mass layoffs, and political stances. One adviser told Financial Times, “The one constant in Elon’s world is how quickly he burns through deputies. Even the board jokes, there’s time and then there’s ‘Tesla time’. It’s a 24/7 campaign-style work ethos. Not everyone is cut out for that.”

Robert Keele, xAI’s general counsel, ended his 16-month tenure in August, posting an AI-generated video of a lawyer screaming while shoveling molten coal. “I love my two toddlers and I don’t get to see them enough,” he said. CFO Mike Liberatore lasted three months before joining Sam Altman at OpenAI. He wrote on LinkedIn, “102 days – 7 days per week in the office; 120+ hours per week; I love working hard.”

Rivalries and politics

Employees told Financial Times that Musk’s intensity ramped up after ChatGPT launched in late 2022, shaking up Silicon Valley. Some said Musk’s feud with OpenAI co-founder Sam Altman fueled pressure on staff.

Others cited discomfort with Musk’s political stances. Some staff worried about conversations with family over his views, ranging from transgender rights to conservative activism. Musk, Tesla, and xAI declined to comment.

Also read: 'Grokipedia': Elon Musk says xAI is working on a Wikipedia rival powered by AI

Strategic shifts and fallout

Tesla had been relatively stable, but the April 2024 layoff of 14,000 employees triggered departures. Some left as Musk diverted investment from EV and battery projects to robotics, AI, and self-driving initiatives. The $25,000 low-cost EV, internally dubbed NV-91, was canceled. Daniel Ho, who oversaw the project, moved to Waymo.

Several senior figures exited: Rohan Patel, Hasan Nazar, Drew Baglino, and Rebecca Tinucci. David Zhang, Nagesh Saldi, Vineet Mehta, Milan Kovac, and Ashish Kumar also departed, reported Financial Times.

Sales troubles prompted further shake-ups. Omead Ashfar, Musk’s trusted lieutenant, was dismissed as head of sales in North America. His deputy, Troy Jones, followed after 15 years of service. Staff warn that Musk’s behavior affects morale, retention, and recruitment.

At xAI, some staff clashed with Musk’s free-speech absolutism and fast rollout of AI features. Controversial AI outputs sparked concern, yet Musk’s hologram of the Ani bot in the lobby underscores his intense management style. A former Tesla executive told Financial Times, “He’s the boss, the alpha and anyone who doesn’t treat him that way, he finds a way to delete. He does not have shades of grey, is highly calculated, and focused ... that makes him hard to work with. But if you’re aligned with the end goal, and you can grin and bear it, it’s fine. A lot of people do.”

FAQs

Why are so many senior staff leaving Elon Musk’s companies?

Burnout, strategic pivots, mass layoffs, and political controversies.

Which companies are most affected?

Tesla, xAI, and X have seen the highest turnover among senior staff.

Did staff leave voluntarily or were they fired?

Both; some left by choice, others after layoffs or disagreements.

How has Musk’s political stance impacted staff retention?

Polarizing views made some employees uncomfortable, influencing their decision to leave.