Tesla’s board reportedly initiated a search for a successor to CEO Elon Musk about a month ago, according to a Wall Street Journal report citing anonymous sources. The move was allegedly driven by growing concerns over Musk’s divided attention, as he devoted significant time to his role leading the Trump administration’s Department of Government Efficiency (DOGE), while Tesla faced plunging sales and a 71% drop in quarterly profits.
The board is said to have contacted multiple executive search firms to identify potential candidates to steer Tesla through its mounting challenges, including declining stock value and investor frustration over Musk’s political commitments. At the same time, board members reportedly urged Musk to publicly commit to spending more time managing Tesla’s operations. Musk, who also sits on Tesla’s board, did not push back on this request and recently announced plans to drastically reduce his government role to refocus on Tesla.
However, Tesla and Musk have strongly denied these reports. Tesla Chair Robyn Denholm called the claims “absolutely false” and reaffirmed full confidence in Musk’s leadership, emphasizing that no CEO search was underway. Musk himself criticized the report on social media as “a discredit to journalism” and an “extremely bad breach of ethics.”
The conflicting narratives highlight tensions within Tesla amid a turbulent period marked by Musk’s controversial political affiliations, protests against the company, and acts of vandalism at Tesla showrooms and charging stations in the US and Europe. Despite these challenges, Musk’s recent recommitment to Tesla operations and the company’s strategic pivot toward autonomous vehicles and robotics remain central to its future.
While the board’s current stance on succession planning remains unclear, the episode underscores investor unease about Musk’s multitasking and the potential impact on Tesla’s performance. Names like former CTO JB Straubel and current senior executive Tom Zhu have been speculated as possible successors, though no official candidates have been confirmed.Tesla’s board reportedly explored CEO succession options amid concerns over Musk’s divided focus, but both Musk and the company have publicly dismissed these claims, maintaining that Musk will continue to lead Tesla through its ambitious growth plans.