Crisis At Tesla: Could Elon Musk's Departure Be Imminent?

What is the price to pay for having followed Donald Trump in his protectionist madness? For Elon Musk, this price could be called Tesla. The brand is in free fall in several markets, while the image of its founder is deteriorating. The signals are red. The tech empire might no longer be eternal. Doubt has crept in, and it is now gnawing at confidence.

Tesla Against the Wall: Sales Drop and Political Rejection

Tesla is going through an unprecedented period of turbulence. In April, sales fell by 60% in France. In the rest of Europe, the drop reached 28%, according to ACEA. At the same time, the electric car market grew by 24%. This sharp contrast illustrates 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 champion of the Trump camp. 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 see a dilution of attention from a CEO more concerned with politics than 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 when its competitors accelerate. Volkswagen, Renault, BYD are 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 Tesla had begun searching for a successor to Elon Musk. 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 a Musk departure would have a strong impact on valuation. “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 central Musk is, 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 a less divisive leader. 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 reflect a double malaise: political and industrial. Elon 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 structural limit. The segment is too narrow. The initial promise of an accessible green revolution has turned into an elitist product.

Investors know it. Selling cars does not guarantee extraordinary margins. 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, the question is no longer whether Musk is still useful, but whether he is still manageable.

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.