Tesla's board has initiated a formal search for a new CEO to succeed Elon Musk, according to a Wall Street Journal report. The move comes as the company faces declining stock prices, falling profits, and investor concerns over Musk's divided focus between Tesla and U.S. federal policy matters.
Board members reportedly engaged multiple executive search firms to identify potential candidates, though details about the succession timeline remain unclear. The process began approximately one month ago as tensions rose over Tesla's deteriorating financial performance, which included a 71% year-over-year drop in first-quarter profits.
Musk's increased involvement in White House initiatives—particularly efforts to reduce federal spending under former President Donald Trump—has drawn criticism from stakeholders. While the billionaire entrepreneur recently pledged to prioritize Tesla again, questions persist about leadership stability at the electric vehicle manufacturer.
The report notes uncertainty about Musk's awareness of the board's succession planning efforts. As both CEO and a board member, his potential influence on the process adds complexity to Tesla's leadership transition roadmap.
