Tesla’s board has reportedly been quietly scouting for a successor to CEO Elon Musk for approximately a month, according to details revealed in a recent news report. Sources familiar with the matter stated that board members began reaching out to executive search firms amid growing concern over Musk’s divided attention, as Tesla faced mounting protests, deteriorating sales figures, and sharply decreased profits.
These steps were taken as Musk’s engagement in government affairs intensified, notably through his efforts in Washington aimed at reducing federal spending. The board allegedly confronted Musk directly, urging him to refocus his energy and provide a public assurance of his renewed commitment to Tesla. Musk reportedly did not dispute the board’s concerns, later openly promising investors that he would dedicate significantly more time to Tesla starting in May.
However, Tesla chair Robyn Denholm firmly disputed the claims that the company contacted recruitment agencies, labeling them as “absolutely false.” Denholm further asserted that Tesla had communicated this denial to the media even before the report surfaced. Musk echoed Denholm’s strong response, criticizing the coverage as an “EXTREMELY BAD BREACH OF ETHICS.” In response, representatives from the news outlet stated Tesla had never replied to their initial queries prior to publication.
Musk’s recent government engagements have seemingly directly contributed to Tesla’s first year-over-year sales decline in more than ten years, additionally eroding the company’s image among some consumer segments who objected to his political positions. The detrimental outcomes have been swift, as evidenced by Tesla’s market valuation plunging from a peak of $1.5 trillion in December down to its current level near $900 billion.
Despite these significant setbacks, Musk expressed confidence regarding Tesla’s long-term outlook during a recent earnings call, which coincided with announcements of a 71% profit decline and a 9% revenue contraction. “We’re not on the ragged edge of death—not even close,” Musk reassured investors.
At present, the status of Tesla’s leadership succession plan remains uncertain, with further details on Musk’s own awareness or involvement undisclosed.
