1
00:00:01,960 --> 00:00:04,520
Hey everybody. 
Welcome back to the Elon Musk 

2
00:00:04,520 --> 00:00:07,120
Podcast. 
This is a show where we discuss 

3
00:00:07,320 --> 00:00:11,520
the critical crossroads, the 
Shape, SpaceX, Tesla X, The 

4
00:00:11,520 --> 00:00:15,600
Boring Company, and Neurolink. 
I'm your host, Will Walden. 

5
00:00:16,120 --> 00:00:19,960
Elon Musk is losing top 
executives across Tesla and XAI,

6
00:00:19,960 --> 00:00:23,160
and the exits are piling up 
faster than replacements. 

7
00:00:23,600 --> 00:00:27,080
Why are so many of his closest 
lieutenants bailing on roles 

8
00:00:27,080 --> 00:00:29,720
that once gave them influence 
over some of the world's most 

9
00:00:29,720 --> 00:00:33,240
valuable companies? 
Over the past year, Musk has 

10
00:00:33,240 --> 00:00:36,080
seen a steady churn of senior 
leadership from nearly every 

11
00:00:36,080 --> 00:00:38,800
part of his empire. 
Key figures from Tesla's U.S. 

12
00:00:38,800 --> 00:00:42,560
sales team, the battery 
division, public policy office, 

13
00:00:42,560 --> 00:00:45,440
and AI units have walked out on 
him. 

14
00:00:46,400 --> 00:00:53,000
Now X AI the pace is even more 
aggressive with both the CFO and

15
00:00:53,000 --> 00:00:56,400
the general counsel quitting 
within days of each other. 

16
00:00:56,840 --> 00:01:00,240
These aren't mid tier managers 
leaving for a better position 

17
00:01:00,720 --> 00:01:03,560
after a few years. 
Many of them are the same people

18
00:01:03,560 --> 00:01:07,960
must personally tapped to drive 
Tesla's long term bets and XA is

19
00:01:08,360 --> 00:01:11,320
newest experiments. 
Now the reasons behind the 

20
00:01:11,320 --> 00:01:15,080
departure split into two camps, 
fatigue and friction. 

21
00:01:15,080 --> 00:01:18,200
Some left after years of intense
work, saying they wanted to 

22
00:01:18,200 --> 00:01:20,960
build something new or take some
time off. 

23
00:01:20,960 --> 00:01:24,920
But others are leaving 
completely burned out, fed up 

24
00:01:24,920 --> 00:01:27,640
with Musk's politics, are 
unwilling to keep pace with 

25
00:01:27,640 --> 00:01:30,120
constant layoffs and sudden 
shifts in strategy. 

26
00:01:30,520 --> 00:01:33,200
Several who recently quit 
described a culture of 

27
00:01:33,200 --> 00:01:37,280
instability where priorities 
change without warning and 

28
00:01:37,280 --> 00:01:42,320
Musk's personal feuds bleed into
daily work expectations. 

29
00:01:43,000 --> 00:01:46,200
Now inside Tesla, Musk sudden 
shift away from EVs toward 

30
00:01:46,200 --> 00:01:49,600
robotics and AI has left 
veterans of that company 

31
00:01:49,600 --> 00:01:52,840
confused and frustrated. 
In April 2024, the company laid 

32
00:01:52,840 --> 00:01:58,320
off 14,000 people and cancelled 
its low cost EV program, known 

33
00:01:58,320 --> 00:02:03,040
internally as NV 91 or Model 2. 
And that project was seen as 

34
00:02:03,040 --> 00:02:06,200
essential for Tesla's original 
mission of global 

35
00:02:06,200 --> 00:02:09,560
electrification. 
It's shut down triggered exits 

36
00:02:09,800 --> 00:02:13,520
from Daniel Ho, the executive 
who led the initiative, as well 

37
00:02:13,520 --> 00:02:16,560
as other longtime leaders in 
charging, powertrain and battery

38
00:02:16,560 --> 00:02:19,640
systems. 
Now at XAI, Musk's approach to 

39
00:02:19,640 --> 00:02:22,440
competition and leadership has 
created a lot of tension. 

40
00:02:22,760 --> 00:02:28,520
CFO Mike Libertar, he quit after
only three months and moved to 

41
00:02:28,520 --> 00:02:33,080
Open AI, the company that Musk 
also Co founded and now sees as 

42
00:02:33,120 --> 00:02:35,640
a threat. 
He publicly said he worked more 

43
00:02:35,640 --> 00:02:38,960
than 120 hours a week and spent 
every day in the office. 

44
00:02:39,160 --> 00:02:40,560
That's not a way to live, 
people. 

45
00:02:41,160 --> 00:02:45,160
General Counsel Robert Kiel left
after 16 months, posting an AI 

46
00:02:45,160 --> 00:02:48,280
generated video of a man 
shoveling coal while screaming. 

47
00:02:48,840 --> 00:02:51,280
Both were among a string of 
senior staff who questioned 

48
00:02:51,280 --> 00:02:54,520
whether Musk's intensity had 
crossed into dysfunction. 

49
00:02:55,120 --> 00:03:00,160
The multiple recent exits at X 
AI said the rivalry with Open AI

50
00:03:00,160 --> 00:03:02,680
had become a complete obsession 
from Musk. 

51
00:03:03,080 --> 00:03:07,280
Since chat GP TS release in 
2022, Musk has pushed his teams 

52
00:03:07,280 --> 00:03:11,240
to match or surpass it at all 
costs. 

53
00:03:12,000 --> 00:03:16,160
Now, some insiders believe the 
obsession drives rushed feature 

54
00:03:16,160 --> 00:03:19,760
launches and creates a culture 
where dissent is punished. 

55
00:03:20,320 --> 00:03:24,640
Over the summer, Grok, which is 
XA is chatbot generated pro 

56
00:03:24,640 --> 00:03:28,120
Hitler content after Musk 
ordered it to be less woke. 

57
00:03:28,680 --> 00:03:32,400
How that change led to public 
criticism and more internal 

58
00:03:32,400 --> 00:03:34,440
resignations. 
People don't want to be 

59
00:03:34,440 --> 00:03:36,640
associated with that. 
That's disgusting. 

60
00:03:37,320 --> 00:03:40,800
So I would leave too. 
I don't want any part of that. 

61
00:03:40,800 --> 00:03:43,720
Nobody wants any part of that. 
And if you do, you're a loser. 

62
00:03:44,720 --> 00:03:48,200
Now saying that working there 
makes you a loser, but having 

63
00:03:48,200 --> 00:03:52,040
anything to do with pro Hitler 
content makes you a loser. 

64
00:03:52,280 --> 00:03:55,280
That's all I'm saying. 
Let me know in the comments of 

65
00:03:55,280 --> 00:03:58,920
whatever podcast platform you're
on if you think that makes you a

66
00:03:58,920 --> 00:04:02,720
loser to be associated with a 
company. 

67
00:04:02,840 --> 00:04:07,720
Even if it was a flaw and it was
just a programming error, you 

68
00:04:07,720 --> 00:04:09,360
don't want any part of that, 
right? 

69
00:04:09,960 --> 00:04:12,520
I wouldn't want my family. 
I wouldn't want anybody involved

70
00:04:12,520 --> 00:04:14,080
with me to have any part of 
that. 

71
00:04:14,920 --> 00:04:19,640
It's not the right thing. 
Now there's also politics here. 

72
00:04:20,399 --> 00:04:25,200
They play a role in attrition. 
Musk's public support for the 

73
00:04:25,200 --> 00:04:29,360
president, Donald Trump and far 
right provocateurs has made 

74
00:04:29,360 --> 00:04:31,880
internal conversations difficult
for some employees. 

75
00:04:32,280 --> 00:04:35,200
Several said they didn't want to
keep defending Musk to their 

76
00:04:35,200 --> 00:04:38,200
families. 
A veteran of the company who 

77
00:04:38,200 --> 00:04:41,200
recently left said every team 
meeting now carries political 

78
00:04:41,200 --> 00:04:42,960
weight. 
And those who feel morally 

79
00:04:42,960 --> 00:04:46,600
conflicted about Musk's behavior
are already just trying to find 

80
00:04:46,600 --> 00:04:48,160
another job. 
They're halfway out the door. 

81
00:04:48,800 --> 00:04:50,360
They're waiting for that 
opportunity. 

82
00:04:50,720 --> 00:04:54,000
Tesla has also lost 
institutional knowledge in areas

83
00:04:54,000 --> 00:04:59,920
Musk once prioritize. 
The lead on Optimus AI Ashish 

84
00:04:59,920 --> 00:05:04,280
Kumar left for Meta. 
Milan Kovac, who oversaw the 

85
00:05:04,280 --> 00:05:07,720
overall humanoid robot program, 
also left. 

86
00:05:08,200 --> 00:05:12,400
Vineet Matad, who spent 18 years
in Tesla's battery group, left 

87
00:05:12,400 --> 00:05:14,880
in April. 
Those aren't roles that can be 

88
00:05:14,880 --> 00:05:18,280
filled quickly though. 
Those are roles that you need to

89
00:05:18,280 --> 00:05:22,000
be a senior in, you need to have
knowledge and there's just a few

90
00:05:22,000 --> 00:05:25,080
people that can do those things.
Many of the people walking out 

91
00:05:25,080 --> 00:05:28,840
helped shape the long term 
technology road map that Musk is

92
00:05:28,840 --> 00:05:36,040
still trying to execute now. 
Others, like Amid AFSAR, weren't

93
00:05:36,040 --> 00:05:38,280
just employees, they were close 
confidants. 

94
00:05:38,360 --> 00:05:42,880
Had Musk's ear ran sales and 
operations in North America was 

95
00:05:42,880 --> 00:05:45,840
also described as Musk's 
executioner. 

96
00:05:46,280 --> 00:05:50,400
His exit in June, followed by 
his deputy Troy Jones, marked 

97
00:05:50,400 --> 00:05:54,840
the end of a 15 year stretch of 
operational continuity. 

98
00:05:56,440 --> 00:06:00,120
Other exits came after Tesla's 
sales numbers fell and many 

99
00:06:00,120 --> 00:06:03,160
inside blame Musk for pushing 
away liberal customers with this

100
00:06:03,160 --> 00:06:06,000
political posts. 
The chaos isn't limited to Tesla

101
00:06:06,000 --> 00:06:11,160
and XAI. 
Engineers X has seen an entire 

102
00:06:11,160 --> 00:06:13,200
layer of product and comms 
leadership vanish. 

103
00:06:14,480 --> 00:06:17,240
Linda Yaccarino resigned the 
CEO. 

104
00:06:17,240 --> 00:06:19,680
She resigned in July after 
growing tired of being 

105
00:06:19,680 --> 00:06:23,000
sidelined. 
The Co founder of XAI quit a 

106
00:06:23,000 --> 00:06:26,120
month later to start an AI 
safety nonprofit. 

107
00:06:27,080 --> 00:06:28,720
What happened there to make that
happen? 

108
00:06:29,160 --> 00:06:35,040
Product heads Hefei Wang and 
Patrick Tribert. 

109
00:06:35,040 --> 00:06:37,280
I'm sorry about the names. 
I'm probably butchering them. 

110
00:06:37,680 --> 00:06:40,320
I don't know exactly who these 
people are, how to pronounce 

111
00:06:40,320 --> 00:06:42,880
their names. 
So, you know, they left as well.

112
00:06:43,120 --> 00:06:47,480
Engineering leaders were also 
poached by open AI. 

113
00:06:49,720 --> 00:06:55,480
So loyal members matter to Musk 
more than the structure of the 

114
00:06:55,480 --> 00:06:56,760
company. 
He's going to find other people 

115
00:06:56,760 --> 00:06:59,880
to fill those roles. 
And according to former 

116
00:06:59,880 --> 00:07:03,360
executive Musk's, he makes all 
the critical calls and surrounds

117
00:07:03,360 --> 00:07:06,520
himself with people willing to 
just go along with it. 

118
00:07:07,280 --> 00:07:10,000
You know, if he makes a 
decision, all right, let's do 

119
00:07:10,000 --> 00:07:11,360
it. 
That sounds like a great idea. 

120
00:07:11,360 --> 00:07:14,840
Mr. Musk 1 described the 
environment as rigid with no 

121
00:07:14,840 --> 00:07:17,920
tolerance for dissent. 
He's the boss, he's the alpha. 

122
00:07:18,240 --> 00:07:22,280
Anyone who doesn't treat him 
that way finds a way to get 

123
00:07:22,280 --> 00:07:25,440
deleted now. 
Despite the turnover though, 

124
00:07:25,720 --> 00:07:28,440
Musk keeps going on. 
He recently installed a hologram

125
00:07:28,440 --> 00:07:32,280
of Annie and which is a 
flirtatious AI character whose 

126
00:07:32,280 --> 00:07:36,040
in app behavior sparked 
criticism in the lobby of XAIS 

127
00:07:36,040 --> 00:07:39,040
office. 
Musk plans to keep building his 

128
00:07:39,040 --> 00:07:41,800
vision of the future, even if 
many of the people who helped 

129
00:07:41,800 --> 00:07:46,360
him get this far and make his 
multiple billions of dollars are

130
00:07:46,360 --> 00:07:48,280
no longer around to see it 
through. 

131
00:07:48,280 --> 00:07:51,200
They made their paydays too, of 
course he made a lot more than 

132
00:07:51,200 --> 00:07:55,880
they did. 
Robert Denham, who is the chair 

133
00:07:55,880 --> 00:07:59,240
of Tesla, said people focus too 
much on exits and not enough on 

134
00:07:59,240 --> 00:08:02,600
new hires, but the pace and 
pattern of these departures 

135
00:08:02,600 --> 00:08:05,400
suggests something deeper than 
normal attrition. 

136
00:08:06,480 --> 00:08:08,600
They're not isolated. 
Things have changed. 

137
00:08:08,720 --> 00:08:12,520
The warnings from inside the 
machine that the machine may be 

138
00:08:12,520 --> 00:08:15,000
changing. 
Elon Musk is still in control 

139
00:08:15,000 --> 00:08:18,160
there, but the foundation is 
definitely shaking. 

140
00:08:18,480 --> 00:08:21,920
The bones are getting rattled. 
We'll have all the information 

141
00:08:21,920 --> 00:08:25,760
about what's going on in his 
companies, so stay tuned and 

142
00:08:25,760 --> 00:08:28,320
subscribe to the show. 
Hey, thank you so much for 

143
00:08:28,320 --> 00:08:30,520
listening today. 
I really do appreciate your 

144
00:08:30,520 --> 00:08:32,080
support. 
If you could take a second and 

145
00:08:32,080 --> 00:08:35,039
hit the subscribe or the follow 
button on whatever podcast 

146
00:08:35,039 --> 00:08:38,039
platform that you're listening 
on right now, I greatly 

147
00:08:38,039 --> 00:08:39,679
appreciate it. 
It helps out the show 

148
00:08:39,679 --> 00:08:42,320
tremendously and you'll never 
miss an episode. 

149
00:08:42,559 --> 00:08:45,920
And each episode is about 10 
minutes or less to get you 

150
00:08:45,920 --> 00:08:48,640
caught up quickly. 
And please, if you want to 

151
00:08:48,640 --> 00:08:54,760
support the show even more, go 
to patreon.com/stagezero and 

152
00:08:54,760 --> 00:08:57,240
please take care of yourselves 
and each other and I'll see you 

153
00:08:57,240 --> 00:08:57,720
tomorrow.
