Tesla board quietly begins search for Musk’s successor amid company challenges: WSJ

Key Takeaways

Tesla’s board is trying to find Elon Musk’s successor amid declining gross sales.
The search is pushed by exterior consultancy and Musk’s decreased give attention to day-to-day operations.

Tesla’s board of administrators quietly initiated a seek for CEO Elon Musk’s successor amid declining gross sales and income, reaching out to a number of govt search corporations a couple of month in the past, the Wall Road Journal reported Wednesday, citing folks conversant in the talks.

The corporate has additionally been searching for so as to add an unbiased director to its eight-member board and has been assembly with main buyers to shore up confidence, based on the report.

The search was mentioned to have been launched amid rising considerations about Musk’s time away from Tesla.

The tech mogul devoted quite a lot of hours to working in Washington as head of the Division of Authorities Effectivity (DOGE) beneath President Donald Trump. Throughout that interval, Tesla’s first-quarter revenue plunged 71%, and gross sales fell in key markets together with China, Germany, and California.

In accordance with the report, the board just lately met with Musk and urged him to re-engage with firm operations, a request he didn’t resist.

“Beginning subsequent month, I’ll be allocating much more of my time to Tesla,” Musk mentioned throughout a latest earnings name.

It’s unclear whether or not Musk was conscious of the succession planning discussions or whether or not his pledge to refocus on Tesla has affected the board’s efforts, the report said.

Tesla shares have declined sharply in latest months, following a peak valuation of $1.5 trillion in late 2024. The inventory closed Wednesday down round 3%, per Yahoo Finance information.

The corporate’s Cybertruck has underperformed expectations, and its pivot to AI and robotics, together with the upcoming launch of a robotaxi service, has but to offset weakening EV demand.

Musk, who stays a board member and owns roughly 13% of the corporate, has privately expressed frustration over working with out pay since a Delaware choose voided his compensation bundle final 12 months. The board has since shaped a committee to revisit CEO compensation.

Final spring, Musk expressed to a confidant that he not wished to be Tesla’s CEO however apprehensive about discovering an acceptable substitute who might promote Tesla’s imaginative and prescient past automotive manufacturing.

“We’re not on the ragged fringe of dying, not even shut,” Musk instructed buyers after saying his intention to cut back his time in Washington.

Tesla reported retaining its 11,509 Bitcoin in Q1 2025 regardless of its monetary efficiency falling wanting expectations. Tesla’s Bitcoin stash noticed a restoration in worth, surpassing $1 billion as Bitcoin costs rose.