Musk’s managemet style drives away key managers
Elon Musk’s business empire is facing a wave of departing executives, triggered by a mix of his high demands, political activism, strategic course changes, and mass layoffs. The exodus has hit several key departments within Tesla, such as US sales, battery development, public affairs, and information technology. At xAI, Musk’s artificial intelligence start-up that has merged with X, there has also been significant turnover at the top, with both the CFO and the general counsel leaving in quick succession.
The departures reflect a broader trend within Musk’s conglomerate, which encompasses five companies with more than 140,000 employees. While some employees left voluntarily to pursue entrepreneurship or take a career break, others cite burnout, disappointment with Musk’s strategic shifts, mass layoffs, and his controversial political stances as reasons for leaving.
Musk’s intense work ethic and rapid decision-making are well documented, prompting one adviser to describe the constant turnover among his deputies. Employees also note an increased sense of urgency following the rise of ChatGPT at the end of 2022, which shook up the established order in Silicon Valley. Musk’s rivalry with Sam Altman, co-founder of OpenAI and now Musk’s archrival, is said to be adding to the pressure on staff.
Musk’s open support for Donald Trump and his advocacy for far-right figures has also made some employees uncomfortable. They worry about difficult conversations with family members regarding Musk’s polarizing views on issues such as transgender rights and conservative activism.
System shock
Tesla, traditionally the most stable part of Musk’s empire, lost a significant number of employees after the mass layoffs in April 2024. Some employees felt alienated by Musk’s shift in priorities from new electric vehicles and battery projects to robotics, AI, and self-driving robot cars.
The cancellation of a programme to develop an affordable electric car for emerging markets further fueled dissatisfaction among those who saw it as crucial to Tesla’s mission to reduce global emissions.
This change led to a series of high-profile departures. Executives responsible for government policy, the powertrain and energy units, the Supercharger division, and the launches of the Model Y and Cybertruck left the company. Vineet Mehta, a veteran employee who was crucial to battery development, also departed, underscoring the significant impact of these strategic changes.
Meanwhile, xAI is grappling with its own problems. Some employees have expressed concerns about Musk’s strong focus on absolute freedom of speech and his alleged negligence regarding user safety. The integration of the Grok chatbot into X sparked controversy after it praised Adolf Hitler, highlighting tensions between Musk’s vision and ethical considerations.
Former CFO Mike Liberatore reportedly clashed with Musk’s inner circle over corporate structure and financial goals, reflecting broader tensions between Musk’s aggressive approach and traditional business practices. Linda Yaccarino, CEO of X, also left out of frustration with Musk’s unilateral decision-making, illustrating the challenges within xAI.
Despite the departures, Tesla chair Robyn Denholm insists the company remains attractive to talent. However, the ongoing exodus points to a complex and evolving dynamic within Musk’s empire, raising questions about long-term sustainability and leadership.
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