According to a recent report by The Wall Street Journal, Tesla’s board of directors has initiated a search for a potential successor to CEO Elon Musk. The move comes amid declining sales and profits, as well as growing concerns among investors over Musk’s focus on external ventures.
Approximately a month ago, as Tesla’s stock was on a downward trend, board members reportedly reached out to executive search firms to begin a formal process of identifying the company’s next chief executive. Tensions within the company have been escalating, with profits dropping by 71 percent in the first quarter, intensifying the urgency for a leadership review.
The board has narrowed its search to a major firm, though the current status of the succession plan remains unclear. It is also uncertain whether Musk is aware of the board’s efforts or if his recent commitment to dedicate more time to Tesla has influenced their plans.
Musk has been spending significant time assisting U.S. President Donald Trump with federal spending reductions, which has contributed to investor frustration regarding his availability for Tesla. In response to concerns, Musk assured investors that he would refocus his attention on steering Tesla back on course.
Tesla faces mounting pressure to reverse its financial downturn and meet production goals. The potential leadership change signals the board’s commitment to addressing these challenges and securing the company’s future.
