Tesla’s board of directors has reportedly begun a search for a new chief executive officer to replace Elon Musk, according to a report by The Wall Street Journal. The move comes amid concerns over Musk’s divided focus, as he balances leadership of Tesla with significant involvement in the Trump administration’s Department of Government Efficiency (DOGE) and other ventures.
Approximately one month ago, Tesla board members contacted several executive search firms to explore potential candidates for the CEO role, sources familiar with the matter told The Wall Street Journal. The initiative was sparked by Musk’s heavy commitment to DOGE, where he has spearheaded controversial efforts to reduce federal spending and jobs, drawing criticism and impacting Tesla’s public image.
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Tesla has faced a challenging 2025, with a reported 71% drop in quarterly profits and a 20% decline in automotive revenue, compounded by a global backlash against Musk’s political activities. Protests under the “Tesla Takedown” movement have targeted Tesla showrooms, with some incidents escalating to vandalism. The company’s stock has plummeted over 50% from its peak in December 2024, reflecting investor concerns about declining sales, increased competition from Chinese automakers like BYD, and Musk’s pivot from affordable electric vehicles to ambitious projects like driverless taxis and humanoid robots.
The board’s search for a successor has raised questions about Musk’s awareness of the effort, as he is also a board member. It remains unclear whether his recent pledge to reduce time spent with DOGE and refocus on Tesla has influenced the succession planning. During a recent earnings call, Musk announced he would significantly cut back on his government role starting in May, stating, “My time allocation to DOGE will drop significantly.”
Analysts and investors have expressed mixed sentiments. Some argue that Musk’s vision and charisma are integral to Tesla’s identity, with one X post stating, “Elon has been the face of the company since inception. Founder-led companies are managed differently.” Others, including prominent Tesla investor Ross Gerber, have called for Musk to step down, citing damage to the company’s reputation.
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The board reportedly met with Musk, urging him to publicly commit to prioritizing Tesla. While Musk did not push back, the current status of the CEO search remains uncertain. Speculation about potential candidates includes Tom Zhu, Tesla’s Senior Vice President, who has been noted for his operational expertise.
Tesla’s board is also seeking to appoint an independent director to strengthen governance, a move seen as part of broader efforts to address shareholder concerns. The company did not immediately respond to requests for comment.
As Tesla navigates this pivotal moment, the outcome of the CEO search could reshape the company’s trajectory. With Musk’s leadership having defined Tesla for nearly two decades, any transition will be closely watched by investors, employees, and the global market.