Musk Faces Departure of Key Executives at Tesla and xAI, According to FT Reports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2025
0mins
Should l Buy TSLA?
Senior Departures: Elon Musk is experiencing significant turnover among senior staff at his companies, including Tesla and xAI, due to dissatisfaction with his leadership and recent changes.
Key Departures: Notable exits include members from Tesla's U.S. sales team, battery and powertrain operations, public affairs, and core teams working on the Optimus robot and AI projects.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Musk Merges SpaceX with xAI, Wealth Soars
- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
See More
Tesla Launches Limited-Time FSD Transfer Program
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
See More
Tesla's Transition Risks vs. AI Investment Opportunities
- Tesla's Transition Challenges: Tesla's stock has surged 3,500% over the past decade, but it is currently undergoing a significant shift from electric vehicles to robotics and autonomous vehicles, facing dual pressures from slowing core EV sales and rising costs.
- Deteriorating Financials: Tesla's sales declined in Q4, with annual revenue falling for the first time to $94.8 billion, operating expenses rising 39% to $3.6 billion, and net income dropping 60% to $0.24 per share, indicating financial strain during this transition.
- AI Stock Potential: In contrast to Tesla, Micron and TSMC are benefiting from a surge in demand for AI infrastructure, with Micron's Q1 revenue rising 56% to $13.6 billion and adjusted EPS up 167% to $4.78, while TSMC's sales increased nearly 26% to $33.7 billion, showcasing strong growth potential.
- Valuation Advantage: Micron and TSMC have P/E ratios of 39 and 33, respectively, compared to Tesla's 390, highlighting their relative value in the current market environment, making them more attractive investment options for shareholders.
See More
3 Strategies to Calm Stock Market Anxiety Ahead of Key Jobs Report
Stock Market Outlook: The Super Bowl Indicator suggests a positive year for the stock market, particularly following the Seattle Seahawks' victory.
Investor Sentiment: Even skeptics of the Super Bowl Indicator can find reasons for optimism as the market approaches a significant January jobs report.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Thiel Reduces Tesla Stake, Increases Microsoft and Apple Holdings
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
See More
Musk Merges SpaceX with xAI, Wealth Soars
- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
See More
Tesla Launches Limited-Time FSD Transfer Program
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
See More
Tesla's Transition Risks vs. AI Investment Opportunities
- Tesla's Transition Challenges: Tesla's stock has surged 3,500% over the past decade, but it is currently undergoing a significant shift from electric vehicles to robotics and autonomous vehicles, facing dual pressures from slowing core EV sales and rising costs.
- Deteriorating Financials: Tesla's sales declined in Q4, with annual revenue falling for the first time to $94.8 billion, operating expenses rising 39% to $3.6 billion, and net income dropping 60% to $0.24 per share, indicating financial strain during this transition.
- AI Stock Potential: In contrast to Tesla, Micron and TSMC are benefiting from a surge in demand for AI infrastructure, with Micron's Q1 revenue rising 56% to $13.6 billion and adjusted EPS up 167% to $4.78, while TSMC's sales increased nearly 26% to $33.7 billion, showcasing strong growth potential.
- Valuation Advantage: Micron and TSMC have P/E ratios of 39 and 33, respectively, compared to Tesla's 390, highlighting their relative value in the current market environment, making them more attractive investment options for shareholders.
See More
3 Strategies to Calm Stock Market Anxiety Ahead of Key Jobs Report
Stock Market Outlook: The Super Bowl Indicator suggests a positive year for the stock market, particularly following the Seattle Seahawks' victory.
Investor Sentiment: Even skeptics of the Super Bowl Indicator can find reasons for optimism as the market approaches a significant January jobs report.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Thiel Reduces Tesla Stake, Increases Microsoft and Apple Holdings
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
See More
