Elon Musk Out at Tesla? Current Status and What It Means

If you’ve followed Tesla’s stock price this year, the numbers tell a stark story: shares down roughly 40% year-to-date, a 71% profit plunge in the first quarter, and 14,000 employees laid off. Investors are asking whether Elon Musk’s attention is split too thin between running Tesla and his role at the Department of Government Efficiency (DOGE).

Elon Musk’s current stake in Tesla: ~13% (as of 2025) ·
Tesla Q1 2025 profit decline: 71% year-over-year ·
Employees laid off: 14,000 (10% workforce) ·
Musk’s pledge on DOGE role: Significantly reduce involvement ·
Tesla stock price change (2025 YTD): Down ~40%

Six key data points frame the decision:

The pattern is clear: every metric that matters to investors is pointing south except market cap, which has held partly on promise of future products.

Is Elon Musk still in Tesla?

As of mid-2025, Elon Musk is still Tesla’s CEO — but the role has changed. He stepped down as board chair in 2018 as part of a settlement with the U.S. Securities and Exchange Commission (Reuters). Today he owns roughly 13% of Tesla stock, down from the 22% stake he held in 2021. That minority holding means he can’t unilaterally block a shareholder revolt — but his voting power is still formidable given Tesla’s dual-class share structure.

How much of Tesla does Elon Musk still own?

Musk’s ownership stake is approximately 13% as of 2025. He sold billions in Tesla shares to fund his acquisition of Twitter (now X) in 2022. Since then, he has not bought back significant amounts. According to BBC News, the stake is now low enough that he cannot dominate shareholder votes alone — but high enough to remain the largest individual shareholder.

Ousting Musk would require either a board decision or a shareholder vote. The board has so far backed him publicly — Reuters reported on May 1, 2025 that board members moved to support Musk amid investor concerns. But the same article noted that the board faces a “unique challenge” regardless of whether he stays or goes. A shareholder lawsuit could force a vote, but current Delaware law and Tesla’s governance structure make a hostile ouster unlikely without a coordinated investor campaign.

What is going on with Elon Musk right now?

Musk’s dual role at Tesla and the Department of Government Efficiency (DOGE) has dominated headlines in 2025. In April 2025, he told NPR that he would cut his DOGE time to one or two days per week beginning in May, saying “the bulk of the work is mostly done.” But that assurance didn’t calm investors. The same week, Tesla reported a 71% drop in profit and announced layoffs of 14,000 employees — roughly 10% of its workforce.

Meanwhile, the stock price has fallen about 40% year-to-date. Reuters reported that shares dropped another 8% in July after Musk said he would launch a new U.S. political party. The political move came after Tesla posted its second straight quarterly delivery decline.

The pattern: Every time Musk tries to signal he’s stepping back from politics, he steps further into it. Investors are left holding a stock that’s down 40% with a CEO who can’t seem to choose between the factory and the podium.

Can Elon be ousted from Tesla?

Technically, yes — but practically, it’s a long shot. Tesla has a classified board and Musk controls a large voting bloc through his stake and supportive institutional holders. However, CNN reported on May 28, 2025 that a coalition of shareholders sent a letter demanding Musk dedicate a minimum of 40 hours each week to Tesla. The letter also called for a transparent CEO succession plan — a clear signal that investors are preparing for a future without Musk at the helm.

Fortune added that investors asked the board to disclose how it would replace Musk in an emergency or if he “lost interest.” That request is unprecedented for a company so closely tied to a single leader.

Why is everybody selling their Teslas?

Sales data from key markets shows a clear decline. In China — Tesla’s largest market, accounting for roughly 40% of sales — competition from BYD and other local EV makers has intensified. In Europe, registrations fell as tariffs and brand sentiment soured. In the U.S., negative headlines around Musk’s DOGE role and political comments have turned off a segment of buyers.

The layoffs of 14,000 employees in April 2025 — confirmed by BBC News — also damaged the brand’s image as a forward-thinking employer. When Tesla cuts 10% of its workforce, customers wonder about quality and future support.

Why are people not buying Tesla anymore?

Multiple factors: price cuts that hurt resale value, an aging model lineup (the Model 3 and Model Y are both over five years old), and growing competition from brands like BYD, Hyundai, and Ford. According to report from The Guardian, Musk’s political alignment and DOGE role have become a “turnoff for left-leaning customers who once drove demand.”

Did Tesla lay off 14,000 employees?

Yes. The layoff was announced in April 2025 and confirmed by BBC News and NPR. It was the largest workforce reduction in Tesla’s history and included salaried and hourly workers across manufacturing and engineering.

Why this matters: A company that trims its workforce by 10% while its CEO splits time with a government agency sends a confusing signal to both employees and customers. Trust erodes faster than it can be rebuilt.

Is Tesla in trouble financially?

Tesla’s finances are in a mixed state. The cash balance remains solid at over $30 billion, but the profit trajectory is alarming. Q1 2025 net profit dropped 71% from a year earlier, according to BBC News. Revenue also fell, and automotive margins slipped below 15% for the first time since 2019.

The company is betting on new models — the Cybertruck and a next-generation vehicle (often called Model 2) — to revive sales. But the Cybertruck’s ramp-up has been slower than expected, and the Model 2 won’t launch until at least 2026.

Does Tesla still have a future?

Yes, but it’s not guaranteed. Reuters notes that Tesla’s board must navigate “whether he stays or goes” as the central strategic question. Ex-Stellantis CEO Carlos Tavares, quoted in Reuters, predicted that Tesla could exit the car industry if it doesn’t address its product pipeline and leadership focus.

The catch: Tesla has the cash to survive a couple of bad years. But it doesn’t have the brand tolerance for a distracted CEO if sales keep falling. The math is simple: if you sell fewer cars, you cut costs — but you can’t cut your way to growth.

Timeline: key events

• 2018 – Elon Musk steps down as Tesla board chair under SEC settlement.
• 2024 – Musk takes on role at DOGE (Department of Government Efficiency).
• March 2025 – Tesla investor calls for Musk to step down as CEO (Reuters).
• April 2025 – Tesla reports Q1 profit plunge of 71%; announces layoffs of 14,000 employees (BBC News).
• April 23, 2025 – BBC reports Musk pledges to significantly cut back DOGE role (BBC News).
• May 2025 – Stock continues to slide; board reaffirms support for Musk (Reuters).
• May 28, 2025 – Shareholders demand Musk work at least 40 hours/week at Tesla (CNN).
• July 2025 – Musk announces new political party; shares drop 8% (Reuters).

Confirmed facts vs. what’s unclear

What experts are saying

“Tesla could exit the car industry. The stock market value loss is colossal.”

— Carlos Tavares, ex-Stellantis CEO (via Reuters)

“Musk should step down as CEO unless he gives up the DOGE role.”

— Tesla investor, quoted by Reuters

“I will be allocating far more of my time to Tesla going forward.”

— Elon Musk, via BBC News

Editor’s note: These three quotes capture the tension at the heart of the story — an ex-industry chief predicting collapse, an impatient investor drawing a line, and a CEO promising change but struggling to deliver it.

Summary

The question “Is Elon Musk out at Tesla?” has no simple yes/no answer in mid-2025. He hasn’t been fired, and he hasn’t quit. But the constellation of forces around him — a 71% profit drop, a 40% stock slide, organized shareholder demands, and his own political distractions — is tightening. The board’s current strategy is to back Musk and hope his DOGE exit will refocus him. For Tesla’s long-term investors, the choice is clear: either Musk commits fully and the product pipeline delivers, or they begin positioning for a post-Musk era that could arrive sooner than anyone expects.

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