Linda Yaccarino steps down as X CEO: Why are Elon Musk's top lieutenants leaving him

In a dramatic turn of events, Linda Yaccarino has officially stepped down as Chief Executive of X (formerly Twitter), marking another high-profile departure from one of Elon Musk’s companies. Her resignation comes amid wider leadership churn, including the exit of Tesla veteran Omead Afshar and HR director Jenna Ferrua, both seen as close Musk confidants.

These departures have raised fresh questions about Musk’s increasingly centralised leadership style, as well as the internal challenges facing his business empire, from social media and AI to electric vehicles.

Yaccarino exits amid shifting power at X

Linda Yaccarino joined X in June 2023 with the aim of stabilising advertiser relationships and rebuilding the company’s public image after Musk’s turbulent takeover. However, insiders suggest her role had become increasingly ceremonial in recent months.

Following X’s merger with Musk’s artificial intelligence venture xAI in early 2025, strategic decisions began shifting away from her. According to a report by the Financial Times, Yaccarino’s influence diminished significantly as Musk consolidated control through the new parent structure.

The final blow may have come from a controversy involving X’s Grok chatbot, which surfaced with antisemitic content that went viral. The resulting backlash reignited advertiser concerns and undermined efforts to re-establish brand trust. Though Yaccarino publicly expressed gratitude to Musk and optimism about X’s future, her departure is widely seen as the result of systemic instability and diminished autonomy.

Tesla loses key operational leadership

Yaccarino's exit was closely followed by the departure of Omead Afshar, a senior executive who oversaw Tesla’s sales and operations in North America and Europe. Known for his close working relationship with Musk, Afshar had previously been part of SpaceX and later led the development of Tesla’s Gigafactory in Texas.

Bloomberg and Reuters reported that Afshar was effectively ousted amid disappointing sales numbers in Tesla’s key markets. European sales reportedly fell for five consecutive months, while growth in China remained sluggish. Tesla’s internal restructuring also led to the exit of North America HR director Jenna Ferrua, a long-time company veteran and adviser to Afshar.

The abrupt exits come as Tesla faces increasing pressure from Chinese EV rivals, lagging demand in Western markets, and investor anxiety over its delayed robotaxi rollout.

Centralisation and accountability

The common thread across these resignations appears to be Musk’s tight grip on operations. In both companies, he has moved to reclaim key decision-making powers. At X, the integration into xAI has centralised AI development under Musk’s direct leadership. At Tesla, he has reportedly taken over sales oversight in Europe and North America following Afshar’s exit.

While Musk’s bold leadership style has often been credited for driving innovation, it also creates challenges for experienced executives who may lack the freedom or support needed to execute long-term strategies. Critics argue that such centralisation makes it difficult to retain senior leaders, especially during times of volatility.

What this means for Musk’s empire

These recent departures signal more than just routine turnover. They underscore growing friction between Musk’s vision-driven leadership and the operational demands of billion-dollar businesses.

Whether it’s the transformation of X into an “everything app” or Tesla’s pivot toward autonomy and robotics, execution remains key. And without trusted, empowered lieutenants, Musk may find it increasingly difficult to scale his ambitions while maintaining internal cohesion.

As his companies enter crucial phases from AI development to next-generation vehicle rollouts, leadership stability will be critical. The exits of Yaccarino, Afshar and Ferrua suggest that challenge is far from resolved.