Elon Musk has revealed his intention to reduce how much he puts into political donations and confirmed that he plans to remain the chief executive officer of Tesla for at least the next five years.
He said this decision is meant to assure those who question his ability to focus on Tesla while also being actively involved with Donald Trump’s administration.
While speaking on May 20 during an economic forum in Qatar, Musk explained that he no longer plans to invest heavily in political campaigns as he has done in the past. He emphasized that he believes he has contributed enough already.
Musk has played a central role in Republican political funding, contributing a massive amount toward Trump’s election and also launching the Department of Government Efficiency, also called DOGE, under Trump’s government.
His direct engagement with politics in recent months has led many people to question whether he has stayed fully committed to Tesla, especially as the company continues to face both business and public pressure.
Control of Tesla and Leadership Role
Musk pointed out that having a reasonable amount of control over Tesla is the main reason why he is choosing to remain as CEO. He currently holds around 13% ownership in Tesla. When asked if he intends to keep leading the company, he gave a clear and confident yes.
Previously, Musk had mentioned that he did not feel comfortable advancing Tesla’s role in robotics and artificial intelligence unless he had at least 25% voting control at the company.
Efforts to Reinstate Pay Package
Earlier this year, Musk launched an appeal to bring back his $56 billion compensation package, which was canceled by a court ruling. He believes the judge who overturned it made several mistakes during the legal process.
Although Tesla’s stock price had briefly gone up by 3.3% following Musk’s public comments, it later slowed down and ended up with just a 1% rise. Even with that small boost, Tesla’s stock has dropped by 15% since the beginning of the year.
Speculations About CEO Replacement Denied
This month, Tesla board chair Robyn Denholm pushed back against a claim from the Wall Street Journal that the company had contacted recruitment firms in search of someone to replace Musk as CEO. She dismissed those reports as inaccurate.
During the event in Qatar, Musk also said Tesla had seen improved sales recently. However, in Europe, demand has been affected due to the protests linked to his political involvement and his vocal support of Trump.
Sales Challenges and Market Expectations
Tesla had a 13% fall in deliveries for the first quarter of the year. Some investors now expect that deliveries might drop again in 2025.
This worry is partly because of public reaction to Musk’s political statements and partly because potential customers are waiting for cheaper versions of the updated Model Y, which remains Tesla’s most popular vehicle.
