Tesla Board Eyes CEO Successor as Musk's Political Ties Deepen
Tesla's board of directors has officially launched a low-key search for a new CEO, casting doubt over Elon Musk's long-term leadership at the electric car giant. Board members contacted several executive search firms a month ago to scope out possible replacements for Musk, following concerns about his increased interaction with the Trump government and his chairmanship of the Department of Government Efficiency (DOGE).
The board is reported to have narrowed down its choice to a top executive search firm, though the fate of the succession plan is uncertain. It is not yet clear if Musk, who is also a member of the company's board, was informed of the move or if his recent commitment to devote more time to Tesla has influenced the board's deliberations. With Musk playing such a central role in Tesla's ascension to global leadership over the course of almost two decades, any change in leadership would represent a significant change for the company.
The board is also said to be looking to tighten control by adding an independent director. Meanwhile, high-profile members like Tesla co-founder JB Straubel have spoken with key investors in an attempt to preserve confidence in the company's leadership and direction.
These events happen at a period when Tesla is under increased commercial and political stress. Musk's alignment with the Trump administration as well as endorsing federal budget cutting has triggered across-the-board attacks. Protests have broken out at Tesla outlets in various nations, with protestors denouncing Musk's perceived hand in public sector layoffs. Further, some shops have suffered graffiti and worker walkouts, continuing to hurt sales and operations.
Tesla's business performance has also declined. For the first time in more than a decade, the company posted an annual fall in EV sales in 2024. An earlier drop of 13 percent in first-quarter deliveries was reported this month, along with a 71 percent drop in quarterly profit and a 20 percent decline in automotive revenue.
Responding to increasing pressure, Musk recently made the announcement that he would scale back his time investment in DOGE beginning this month, which indicates a possible realignment of priorities back towards Tesla.
