More Tesla, xAI Execs Resign—Why Leaders Keep Ditching Elon Musk

by | Feb 10, 2026 | General

The exodus from Elon Musk‘s corporate empire reached a new fever pitch this week as two high-ranking leaders—Tony Wu, a co-founder of xAI, and Raj Jegannathan, a Tesla, Inc. (NASDAQ:TSLA) vice president—announced their resignations within 48 hours of each other.

The latest departures follow a trend of leadership instability across Musk’s portfolio of companies. Roughly 66% of Musk’s direct reports have left since 2021, according to analysis by the Financial Times. 

The Latest Departures

Tony Wu (xAI): Wu’s exit is significant as he is the fourth co-founder to leave xAI since its 2023 inception. His departure could leave a void in institutional knowledge as the startup attempts to catch up with rivals like OpenAI and Google.

In just one year, xAI has lost half of its founding team. Wu follows Christian Szegedy (who left last February), Igor Babuschkin (who departed in August) and Greg Yang recently stepped away citing health issues. 

Raj Jegannathan (Tesla): A 13-year veteran who rose to VP of IT and AI Infrastructure, Jegannathan was a trusted lieutenant often tasked with “firefighting.” Most recently, he was unexpectedly placed in charge of North American sales following the dismissal of Troy Jones in 2025.

The Executive Drain

The departure of Wu and Jegannathan is part of a broader “Musk Exhaustion” trend that has hit a breaking point in early 2026. Here’s why the inner circle is shrinking:

  • Philosophical Divides: Tesla veterans like Drew Baglino and Daniel Ho exited as Musk traded affordable EV plans for a focus on robotaxis and Optimus.
  • Unsustainable Pace: The hardcore culture is taking a physical toll. Former xAI CFO Mike Liberatore lasted just 102 days under 120-hour work weeks, while general counsel Robert Keele famously likened the job to “shoveling coal” before quitting for his family.
  • The “Elon Factor”: Musk’s dive into polarizing politics has made it harder to keep talent that may oppose his public-facing activism.

While Musk views high turnover as a way to “trim the fat,” losing 66% of his leadership suggests that even his most devout disciples are finding the burnout—and the boss—increasingly difficult to manage.

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