Tesla board searching for new CEO to replace Elon Musk: Report

By Admin

01 May, 2025

In a surprising development, the Tesla board is reportedly exploring options to replace Elon Musk as the Chief Executive Officer of the electric vehicle giant. According to a report by the Wall Street Journal, the board has contacted several high-profile executive search firms to identify a suitable successor, signaling a potential shift in Tesla’s leadership.

Political Commitments Over Corporate Duties?

The report indicates that this move comes at a time when Elon Musk is heavily involved in political activities and federal administration. Musk, who campaigned aggressively for Donald Trump during the presidential race, has recently been appointed to lead the White House’s Department of Government Efficiency (DOGE)—a role aimed at reducing federal spending and improving the functionality of U.S. departments.

Musk’s growing presence in Washington has reportedly caused concern within Tesla, as it coincides with a sharp decline in the company's performance. Insiders suggest that the board's urgency to find a replacement stems from Musk’s divided focus and the company’s alarming financial downturn.

Internal Tensions and Financial Decline

Tesla’s internal dynamics have been affected by dropping profits and weakening sales, leading to rising tensions. The company reported a staggering 71% plunge in its first-quarter profit this year, with overall revenue dropping by 9%. Most notably, the automotive segment suffered a 20% revenue decline, attributed to weakening demand in key markets like California, Germany, and China.

Employees have reportedly grown uneasy with Musk’s political alignment, especially as former President Trump has increased his anti-EV rhetoric. This contradicts Tesla's foundational mission of promoting clean energy, causing confusion and discontent among staff and consumers alike.

Loss of Brand Appeal and Public Backlash

Tesla’s image has taken a significant hit, particularly in progressive markets. The once iconic brand has reportedly lost appeal in regions such as California and Germany, where some Tesla owners have gone as far as putting stickers on their vehicles to disassociate from Musk’s politics. The public ridicule faced by Tesla’s Cybertruck due to its polarizing design only added fuel to the fire.

Musk’s $250 million donation to Trump’s campaign has intensified public scrutiny and amplified the perception of political bias. Although his alignment with Trump was once seen as potentially beneficial, especially with regards to regulatory relaxation, it now appears to be alienating a substantial portion of Tesla’s customer base.

Musk’s Response and Uncertain Future

Following backlash from investors and board members, Musk reportedly promised to reallocate more of his time to Tesla. “Starting next month, I’ll be allocating far more of my time to Tesla,” he said during a recent earnings call.

Even President Trump weighed in, hinting at Musk’s desire to return to Tesla. “You know you’re invited to stay as long as you want... I guess he wants to get back home to his cars,” Trump joked during a board meeting at the White House.

Despite Musk’s reassurances, it remains unclear how involved he is in the board’s discussions about his potential successor. The WSJ report suggests that a leading executive search firm has been engaged, but the exact stage of the process is still unknown.

As Tesla battles declining profits, internal strife, and waning public support, the company stands at a crossroads. Whether a leadership change will stabilize the situation remains to be seen—but one thing is certain: Tesla's future is under intense scrutiny, and the world is watching.