Tesla’s board of directors had started searching for a new CEO earlier this year amid concerns over Elon Musk’s government activities and a sharp slump in stock prices, the Wall Street Journal reported on Wednesday.
Tesla (NASDAQ:TSLA) shares slid as much as 3.6% in overnight trading following the report.
Board members had reached out to several executive search firms to work on a formal process to find a new CEO, the WSJ report said, citing people familiar with the discussions.
The discussions had begun amid mounting tensions at the company- over a sustained decline in earnings, and over Musk turning too much of his focus towards Washington.
The board had also approached Musk over spending more time at Tesla, and that he needed to state that he would do so publicly. Musk had complied, and had said during the company’s first-quarter earnings call last week that he will dedicate much more of his time to Tesla from May.
But Musk had clarified that he would still engage with the government.
The current status of Tesla’s succession plans could not be determined, the WSJ report said, and it was unclear whether Musk’s pledge had affected these plans. It was also unclear whether Musk, who is also a member of Tesla’s board, was aware of these plans.
Musk was thanked by U.S. President Donald Trump during a cabinet meeting on Wednesday, for his activities in cutting government spending under the Department of Government Efficiency.
Tesla has been grappling with a difficult 2025, as its sales tumbled in the face of increased competition, dwindling electric vehicle demand, and more damningly for Musk, a sales boycott in the U.S. and Europe over the Tesla CEO’s political affiliations.
Musk also said the company faces “significant” headwinds from a bitter trade war between the U.S. and China, although Trump’s recent scaling back of his automotive tariffs could help lessen this blow.
Source: https://www.investing.com/news/stoc...earching-for-ceo-to-replace-musk--wsj-4015321
Tesla (NASDAQ:TSLA) shares slid as much as 3.6% in overnight trading following the report.
Board members had reached out to several executive search firms to work on a formal process to find a new CEO, the WSJ report said, citing people familiar with the discussions.
The discussions had begun amid mounting tensions at the company- over a sustained decline in earnings, and over Musk turning too much of his focus towards Washington.
The board had also approached Musk over spending more time at Tesla, and that he needed to state that he would do so publicly. Musk had complied, and had said during the company’s first-quarter earnings call last week that he will dedicate much more of his time to Tesla from May.
But Musk had clarified that he would still engage with the government.
The current status of Tesla’s succession plans could not be determined, the WSJ report said, and it was unclear whether Musk’s pledge had affected these plans. It was also unclear whether Musk, who is also a member of Tesla’s board, was aware of these plans.
Musk was thanked by U.S. President Donald Trump during a cabinet meeting on Wednesday, for his activities in cutting government spending under the Department of Government Efficiency.
Tesla has been grappling with a difficult 2025, as its sales tumbled in the face of increased competition, dwindling electric vehicle demand, and more damningly for Musk, a sales boycott in the U.S. and Europe over the Tesla CEO’s political affiliations.
Musk also said the company faces “significant” headwinds from a bitter trade war between the U.S. and China, although Trump’s recent scaling back of his automotive tariffs could help lessen this blow.
Source: https://www.investing.com/news/stoc...earching-for-ceo-to-replace-musk--wsj-4015321
