Tesla’s board has reportedly taken steps to search for Elon Musk’s potential successor, according to a recent Wall Street Journal report. The move comes as Tesla battles declining sales, shrinking profits, and growing investor unease over Musk’s political activities in Washington.
About a month ago, board members quietly approached executive search firms to explore possible leadership alternatives. This internal shake-up follows mounting concern over Musk’s reduced focus on Tesla, especially as the electric carmaker saw its first annual sales drop in over a decade and a 71% decline in profits.
In response to the board’s concerns, Musk reportedly agreed to dedicate more time to Tesla, later telling investors he would “allocate far more time to Tesla” starting in May.
Musk’s political involvement, particularly his push to reduce government spending, has also affected Tesla’s brand image. The fallout has been swift, Tesla’s market value has fallen from $1.5 trillion in December to approximately $900 billion.
Despite these challenges, Musk remained upbeat during Tesla’s latest earnings call. “We’re not on the ragged edge of death,” he stated. “Not even close.”
The Journal noted that the current status of the succession plan is unclear, and it remains uncertain whether Musk was fully aware of the board’s efforts.
