As of the latest reports, Elon Musk has not been fired from any of his major roles, including Tesla, SpaceX, or X (formerly Twitter). However, his leadership faces intense scrutiny after Tesla’s stock plummeted 30% this year, shareholder lawsuits over his $56 billion pay package, and growing investor frustration with his political endorsements and erratic behavior. Tesla’s board has reportedly discussed contingency plans, and some major investors are pushing for his reduced influence, but no formal ousting has occurred. Musk remains defiant, doubling down on his controversial stances while leaning into AI and robotics as Tesla’s future. Legal and financial pressures are mounting, but his control over key companies—backed by loyal allies and his own super-voting shares—keeps him in power for now.
Elon Musk’s grip on his business empire is under unprecedented strain as a confluence of financial setbacks, legal battles, and shareholder revolts threaten his long-standing dominance at Tesla, SpaceX, and X. The past month has seen Tesla’s stock nosedive by nearly 30% year-to-date, erasing over $150 billion in market value and prompting panic among institutional investors. The catalyst for the sell-off includes Musk’s polarizing endorsement of far-right political figures, a $56 billion pay package struck down by a Delaware judge (now under appeal), and worsening margins in Tesla’s core EV business. Shareholders, led by heavyweights like Norway’s sovereign wealth fund, are openly agitating for structural changes, including a vote to reincorporate Tesla in Texas—a move seen as an attempt to weaken Musk’s ironclad control.At Tesla, internal leaks reveal a board divided over Musk’s leadership, with some directors quietly exploring succession scenarios while others, like his brother Kimbal, remain steadfast allies. Musk’s response has been characteristically combative: he’s accelerated layoffs (cutting 10% of Tesla’s workforce), scrapped plans for a low-cost EV to prioritize robotaxis and AI, and used X to attack critics, including a bizarre feud with Disney CEO Bob Iger over advertising boycotts. His erratic behavior—such as abruptly canceling a planned India visit and floating conspiracy theories—has further spooked investors, though loyalists argue his long-term bets on AI and energy storage will vindicate his strategy.SpaceX, long Musk’s most stable venture, is now facing its own turbulence. A Reuters investigation alleging widespread drug use and HR violations at the company has triggered a Pentagon review, jeopardizing lucrative defense contracts. Meanwhile, X (Twitter) continues to hemorrhage advertisers and users, with Musk’s own posts—including an endorsement of an antisemitic trope—accelerating the exodus. Despite the chaos, Musk’s super-voting shares and a core of devoted executives (like Tesla CFO Vaibhav Taneja) insulate him from immediate removal. Yet the pressure is building: proxy advisors like ISS are urging shareholders to reject his pay package, and even longtime supporters like Ron Baron have criticized his ‘distractions.’The question is no longer *if* Musk’s influence will wane, but *how* and *when*. Legal rulings, shareholder votes in June, and Tesla’s Q2 earnings could force a reckoning. For now, Musk remains at the helm—defiant, volatile, and betting everything on an AI-driven future—but the cracks in his empire are widening by the day.