Elon Musk made headlines this week by announcing that he intends to remain at Tesla’s helm for at least five more years while backing away from political donations as scrutiny around his public role grows.
Musk, speaking at the industry summit, stated that his future at Tesla is secure. In a lighthearted tone, he responded to a question about his leadership by joking, “Well, no, I might die,” eliciting laughter from the audience. However, on more measured terms, he committed to staying in his role as Tesla’s CEO for the foreseeable future, Daily Mail reported.
He also addressed his history of political contributions. Musk said he would be scaling back significantly, noting he has “done enough” through past donations. He emphasized that his role as a campaign contributor is winding down, particularly referring to prior support of Republican efforts.
The comments arrive at a time when internal worries at Tesla have become more vocal. According to a recent Wall Street Journal report, Tesla’s board of directors began the search for a potential successor last month. Some board members, including Musk’s brother Kimbal Musk, and former board member James Murdoch, are reportedly engaged in discussions about the future of the company’s leadership.
Concerns have emerged over Musk’s increasing political involvement, especially following his advisory role with DOGE (Department of Government Operations and Engineering), where he has been spending significant time in Washington. This involvement, while giving Musk a voice in national policymaking, has led to critique within Tesla’s leadership over divided attention and priorities.
While some Tesla board members remain close allies of Musk, frustration is said to be growing among others. The belief that his political opinions and governmental engagements may be affecting Tesla's performance has energized calls for clearer focus from the executive team. Musk’s ongoing affiliation with controversial political figures has added to the friction.
Tesla vehicle sales have also been under pressure, particularly since Musk’s increased public profile in politics. According to internal company data, the automaker has seen a shift in its customer base, with liberal-leaning consumers—once Tesla’s most enthusiastic supporters—now turning to alternatives like Hyundai, Kia, and Ford, all of which have reported rising EV deliveries in 2025.
The launch of DOGE and Musk’s open support for former President Donald Trump in the 2024 U.S. election have weighed on Tesla’s brand image. Musk donated millions to Trump's campaign and had been financially backing Republican-aligned Super PACs in earlier cycles. This political alignment, while strengthening appeal to certain consumers, appears to have hurt the automaker's reach among broader target audiences.
Musk has acknowledged a changing demographic for Tesla, noting that while sales are performing better among conservative consumers, they are declining among progressive drivers. Internally, the company has pivoted with strategies intended to cater more to right-leaning buyers. These efforts come alongside updates to its product lineup, which has also faced criticism for aging design cycles.
Tesla continues to rely heavily on its Model 3 sedan and Model Y crossover SUV, both of which recently received slight mid-cycle refreshes. The Model 3 originally debuted in 2017 and the Model Y followed in 2020. Each of these vehicles had gone several years without major design changes—an unusually long period in the competitive global auto market.
Despite the 2025 enhancements to the Model 3 and Model Y—mainly involving minor design tweaks and battery improvements—sales have not rebounded as hoped. The company has already begun discounting the long-range Model Y, even though it launched less than a month ago. The move signals weak demand that may linger in a softening market.
The challenges facing Tesla are not limited to North America. Internationally, the brand has been losing momentum, particularly in Europe and China. Sales in China have slipped by more than 18% compared to the same period in 2024, with significant drops also seen in the United Kingdom and Germany, down 62% and 46%, respectively.
Germany presented another potentially damaging moment for Musk’s public image. During a visit, Musk appeared to show support for German leaders criticized for extremist rhetoric around World War II history. In addition, he was photographed making a gesture widely interpreted as a version of the Roman salute, which further fueled backlash across European media.
As Tesla navigates brand and leadership turmoil, technological competition has also intensified. EV specialists like Chinese automaker BYD have unveiled battery systems that differentiate them from U.S.-based manufacturers. BYD's new batteries can fully charge in the time it takes to refill a gas tank—about three times faster than current American EVs.
In facing political backlash, leadership uncertainty, and consumer fatigue, Musk’s recent moves signal an attempt to reset focus. His decision to dial back political donations and recommit to the CEO role could be an effort to reassure investors and Tesla leadership alike.
