Tesla’s board reportedly began quietly looking for a potential successor to CEO Elon Musk around a month ago, engaging executive search firms amid mounting challenges at the automaker. The move coincides with Tesla facing notable declines in both sales and profits, along with intensifying public protests, as Musk increasingly turned his attention to political activities in Washington aimed at significantly reducing government spending.
Board members sat down with Musk recently, voicing concerns about his divided focus and advising him to devote more of his attention to leading Tesla. According to reports, Musk did not disagree, subsequently reassuring investors that he would commit “far more time” to the automaker beginning in May.
This recent political engagement by Musk, however, has already had significant repercussions, marking Tesla’s first annual sales decline in more than a decade and negatively impacting its brand appeal among some consumers. As a result, Tesla’s market value has tumbled sharply, from a high of $1.5 trillion last December down to its current valuation of approximately $900 billion.
Despite these difficulties, Musk projected confidence during Tesla’s earnings call last week. Notwithstanding a 71% drop in profits and a 9% fall in revenue, he sought to reassure investors, firmly stating, “We’re not on the ragged edge of death—not even close.”
The details surrounding the company’s succession plans—including whether Musk himself was made fully aware—remain uncertain at this time.
