Elon Musk commits to leading Tesla for the next five years amid challenges and optimism

Elon Musk said Tuesday he’s committed to leading electric-vehicle maker Tesla for at least the next five years. He made the comment during an interview at the Qatar Economic Forum in Abu Dhabi.

 “Yes, no doubt about that at all,” Musk said in an interview at Bloomberg’s Qatar Economic Forum in Abu Dhabi, CNBC reported.

The timing isn’t lost on anyone: Tesla’s struggling, with profits falling, sales down, and brand reputation under pressure. Still, Musk insists he’s doubling down. Whether that’s enough to steady the ship remains to be seen.

Musk Refocuses After Political Detour

Musk said he’s pulling back from his role with the Department of Government Efficiency (DOGE)—a Trump-era initiative that’s been a lightning rod for criticism—and will refocus on Tesla starting in May. This comes after a rough quarter: net income dropped 71%, and revenue slipped 9% year-over-year, according to Yahoo Finance.

The distraction from politics didn’t help Tesla. Critics pointed to Musk’s political activity as a major reason for the company’s slump. Inside Tesla, the board is backing him. Chair Robyn Denholm pushed back hard on a Wall Street Journal report suggesting the board was looking for a new CEO. “The CEO of Tesla is Elon Musk,” she said, calling the report “absolutely false.”

Musk didn’t hold back either. On X, he slammed the report as an “EXTREMELY BAD BREACH OF ETHICS.”

Analysts Back Musk—for Now

Analysts seem to agree that keeping Musk at the helm is still Tesla’s best option. @DivesTech posted on X: “We believe Musk clearly did the right thing and we believe Musk will remain CEO for at least five years at Tesla,” calling the board’s defense a “warning shot.”

Wedbush analyst Dan Ives also threw his weight behind Musk, calling the announcement the best news Tesla investors could hope for. His view: Musk got the message loud and clear and is recommitting to the company.

Tesla’s Problems Didn’t Start Overnight

Tesla’s had a rough year. Vehicle deliveries are down 13% compared to last year—the biggest dip in recent memory. The stock has dropped more than 30% since January, wiping out billions from Musk’s own net worth.

A big part of the hit? Musk’s political persona. His alignment with far-right figures and role in DOGE triggered boycotts, protests, and even vandalism at Tesla facilities in the U.S. and Europe. CNN reported that sales started sliding in early 2024 after Musk used X to promote controversial figures and opinions. It snowballed from there. A Business Insider report cited a retail investor saying, “People are not going to forget.”

Protesters in Europe even burned Musk effigies. Stickers on Teslas started appearing with phrases like: “I bought this before we knew Elon was crazy.”

The fallout isn’t just political. Tesla’s losing ground to competitors, especially in China, where EV demand is rising—but not for Tesla. Sales dropped more than 8% year-over-year. Meanwhile, Jeff Bezos-backed EV startup Slate is positioning itself as a cheaper, less controversial alternative with a new line of electric trucks. The Cybertruck, hyped for years, hasn’t lived up to expectations. Over 10,000 are reportedly sitting unsold in U.S. inventory.

Big Bets on Robotaxis and Robots

Still, Musk is pressing forward with big ideas. During the earnings call, he said Tesla could one day be worth more than the top five tech companies combined—more than $10 trillion.

How? He’s betting big on AI, autonomous driving, and robotics.

The next big launch: the Cybercab, a robotaxi that Musk claims will roll out in the second half of 2025. He also talked up Optimus, Tesla’s humanoid robot, which he says could play a huge role in the company’s future. Musk expects “millions of Teslas operating autonomously” through software updates later this year.

But plenty of people are skeptical.

The Motley Fool pointed out that automotive revenue is shrinking by about 20% each year, and none of Tesla’s robotics efforts have produced a fully functional product yet. Prior demonstrations of Optimus were either pre-recorded or controlled by humans. And don’t forget—Musk once claimed we’d have a million robotaxis by 2020.

That didn’t happen.

Pay Package Back on the Table

Musk’s renewed focus on Tesla also comes as the board weighs a new pay package. Reuters reported on May 14 that Tesla formed a special committee to evaluate a new compensation plan. This follows a Delaware court striking down his previous $56 billion package.

The board wants to tie future compensation to Tesla’s performance, stock price, and growth goals. It’s also considering how to compensate Musk for work already done, should the old plan not be reinstated. On X, user @Tslachan cheered the move, posting: “Elon is the CEO who can make Tesla the most valuable company in the world.”

What’s Next?

Musk’s commitment resets the narrative. At least for now, he’s back. The board supports him. Analysts seem relieved. But Tesla’s road to recovery won’t be easy.

The damage to the brand, especially in liberal markets, may not be fixable. Wedbush estimates a 10% permanent hit to demand tied directly to Musk’s political reputation. And the company is under pressure on all fronts—competition, trust, and product delivery.

For investors, Musk’s return could be a turning point—or just more noise. His vision is ambitious, but the execution will have to speak louder than the promises.

All eyes are on Tesla. Again.