The Wall Street Journal reported on Wednesday that Tesla board members began searching for a successor to CEO Elon Musk about a month ago, reaching out to several executive search firms. The move comes amid growing investor concern over Musk’s divided attention, especially due to his role heading the US Department of Government Efficiency in the Trump administration and Tesla’s declining stock prices.
While the board has narrowed its search, it remains unclear whether Musk is aware of the discussions or how the succession planning will unfold. Tesla’s sales have plummeted as protests and boycotts intensify over Elon Musk’s alignment with far-right politics. The company’s profits have dropped by two-thirds this year, while competitors from China, Europe, and the US seize the opportunity to gain market share.
Tesla and Musk did not immediately respond to Reuters’ requests for comment.
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Last month, Elon Musk said that he’ll be spending less time in Washington slashing government costs and more time running Tesla after his electric vehicle company reported a big drop in profits.
Musk said on a conference call with analysts that “now that the major work of establishing Department of Government Efficiency is done,” that he will be “allocating far more of my time to Tesla” starting in May. Musk said he now expects to spend just “a day or two per week on government matters.”
Tesla struggled to sell vehicles as it faced angry protests over Musk’s leadership of DOGE, a jobs-cutting group that has divided the country. The Austin, Texas, company reported a 71% drop in profits and a 9% decline in revenue for the first quarter.
“Investors wanted to see him recommit to Tesla,” said Wedbush Securities’ Dan Ives.
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“There will be millions of Teslas operating autonomously in the second half of the year,” Musk said in a conference call after the results were announced. He later added about the personal use of autonomous vehicles, “Can you go to sleep in our cars and wake up at your destination? I’m confident that will be available in many cities in the US by the end of this year.”
Tesla’s revenue fell from $21.3 billion to $19.3 billion in the January through March period, also below Wall Street’s forecast.
(With input from Reuters, Associated Press)
