Elon Musk announced that he will devote more time to Tesla and is stopping all political contributions. Speaking at the Qatar Economic Forum, the outspoken electric vehicle CEO revealed that he plans to remain at the helm of Tesla for at least another five years. He also said that he will no longer support political campaigns financially, as he had "done enough."
When asked how secure his job is, Musk replied with a quip. "Well, no, I might die," he said with a laugh. He also told the audience that he is nearing the end of his involvement as a political donor and will go back to where he belongs.
Musk Distancing Himself from Trump
"In terms of political spending, I'm going to do a lot less in the future," he replied after he was questioned about his efforts to help Republicans. Elon Musk's leadership at Tesla is facing mounting criticism, as his role as CEO continues to be scrutinized by the public and internally.
The head of Tesla, SpaceX, Boring Company, Neuralink, and xAI has lately spent a lot of time advising the White House in his capacity as leader of DOGE.
Tensions reportedly grew within Tesla's executive ranks last month, with The Wall Street Journal reporting that the board had begun searching for a new CEO amid plummeting sales.
Two main reasons were cited for the steep decline: Musk's close ties with far-right political figures worldwide and Tesla's outdated lineup of vehicles. The company has lost support from many of its patronized customers—mostly liberal Americans—who have moved on to other automakers.
While companies like Hyundai, Kia, General Motors, and Ford have announced robust growth in EV sales, Tesla's U.S. performance has weakened.
In the 2024 U.S. presidential race, Musk publicly contributed millions to Donald Trump's campaign, distancing himself from Tesla's original liberal customer base. Even before his public endorsement, Musk had quietly funneled large donations to Republican Super PACs.
Musk's Absence Hampering Tesla
Musk admitted at the Qatar Economic Forum that there has been a decline in support from left-leaning consumers but claimed Tesla is gaining traction among conservative buyers. Tesla has primarily depended on the Model 3 sedan and Model Y crossover SUV, with the latter becoming the world's top-selling vehicle last year.
However, both models have only received minor updates since their debuts—the Model 3 in 2017 and the Model Y in 2020. In 2024, both got a design refresh and improved battery efficiency, but demand has still been sluggish.
Tesla, which has historically faced production shortages with new launches, is now struggling to move some of its latest models. Just weeks after releasing the updated long-range, all-wheel-drive Model Y, the company has already begun offering discounts.
Globally, Tesla's troubles have worsened. Musk's endorsement of German politicians accused of "whitewashing" the Holocaust horror and his alleged 'Roman salute' have alienated overseas buyers. Since January, Tesla's sales in China have dropped over 18% year-over-year, while the sales have declined 62% and 46% in the UK and Germany, respectively.
