X CEO Linda Yaccarino Resigns. Elon Musk Is Under More Pressure.

X CEO Linda Yaccarino has announced her resignation. “It’s the latest evidence that Musk’s mercurial personality makes him a tough guy to work for,” says Battleroad Research analyst Ben Rose. (BRENDAN SMIALOWSKI/AFP via Getty Images)

X CEO Linda Yaccarino announced her resignation from Elon Musk’s social-media company.

That doesn’t directly impact Tesla stock, but it doesn’t make things any easier for CEO Musk. And it’s yet another thing for often-overwhelmed Tesla shareholders to think about.

“After two incredible years, I’ve decided to step down as CEO of X,” wrote Yaccarino on Wednesday. “When [Elon Musk] I first spoke of his vision for X, I knew it would be the opportunity of a lifetime….I’m incredibly proud of the X team – the historic business turnaround we have accomplished together has been nothing short of remarkable.”

X recently merged with Musk’s artificial-intelligence company xAI, which could be part of the reason for the change. X didn’t immediately respond to a request for comment.

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To be sure, executives always come and go, but changes at X, Tesla, or any of Musk’s other companies draw a little extra scrutiny. Recently, Tesla’s Vice President of Manufacturing and Sales Omead Afshar left Tesla, according to reports. Musk was going to oversee North American and European sales in his stead. Tesla didn’t respond to a request for comment about the change.

Sales need a boost. Tesla’s global sales fell about 13% year over year in the first half of 2025. Through May, Tesla’s European sales were down about 37% year over year, while overall EV sales in the region grew about 29%.

“It’s the latest evidence that Musk’s mercurial personality makes him a tough guy to work for,” says Battleroad Research analyst Ben Rose. “I don’t think this has a direct impact on Tesla. I am sure there is a next man or woman up at X to take over.”

Rose rates Tesla stock Buy, but doesn’t have a price target for shares. A Buy rating at Battleroad essentially means Rose expects shares to outperform the market.

Still, before Yaccarino’s replacement arrives, Musk could be burdened with additional work. “Linda was key at X, and her leaving takes more time for Musk towards X,” says Wedbush analyst Dan Ives. Many “moving parts and Linda leaving adds another ball to juggle.”

He rates shares Buy and has a Street-high $500 price target for Tesla stock, according to FactSet.

Issues of management distraction always weigh heavily on Tesla shareholders’ minds. Musk purchased Twitter, now X, in October 2022. While the purchase process played out, Tesla stock fell from roughly $350 to below $200 a share. Shares were about $170 when Yaccarino took the X job, relieving some of Musk’s responsibilities.

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Since buying X, Musk has added xAI, served as an advisor to President Donald Trump, and just this weekend committed to founding a new political party after expressing disappointment with Trump’s tax and spending bill.

Tesla stock fell 0.7% on Wednesday, closing at $295.88, while the S&P 500 and Dow Jones Industrial Average added 0.6% and 0.5%, respectively.

Ives recently suggested that Tesla’s board act to rein in Musk, with the carrot of a new compensation package worth billions and the stick of requirements for the amount of time Musk spends at Tesla. “Shut up, Dan,” was Musk’s response to the idea—posted on X, of course.

Ives calls Musk Tesla’s best asset. Tesla, for instance, has morphed into an AI company on the strength of Musk’s leadership. It just launched a robo-taxi business in Austin, Texas, in June.

There are positives and negatives that come with Musk’s management. Changes at X, shortly after Tesla launched an AI-trained self-driving taxi service, are just another example of that.

Write to Al Root at allen.root@dowjones.com