Tesla’s board members recently reached out to executive search firms to find a new CEO to replace Elon Musk, according to the Wall Street Journal. This move reportedly happened about a month ago due to Musk’s increasing focus on his work with the Trump administration, which has raised concerns. The exact details about the board’s efforts aren’t clear yet.
Musk had mentioned last week that he plans to reduce his time spent on his White House duties and dedicate more of his focus to running Tesla. Musk has been involved in efforts to reduce federal jobs through his role at the Department of Government Efficiency (DOGE), a task that has caused controversy. His absence from Tesla has worried some investors, especially as the company’s electric vehicle (EV) sales are slowing down. Additionally, Musk’s political views, which some describe as far-right, have sparked protests and vandalism at Tesla locations in both the U.S. and Europe.
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Tesla’s board recently met with Musk and asked him to publicly commit to spending more time with the company. However, it is unclear whether Musk, who is also a board member, knew about the CEO succession plans or if his promise to focus more on Tesla will impact these efforts.
The company is facing increased competition worldwide, and Musk has shifted focus from developing a more affordable EV platform to working on projects like self-driving taxis and humanoid robots. This shift positions Tesla as an AI and robotics company rather than just an automaker, and much of the company’s valuation depends on this new vision. Some investors believe Musk’s connection to Trump could help with this transition. Recently, federal regulators made it easier for companies to test autonomous vehicles, which helped boost Tesla’s stock.
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Some Tesla directors, including co-founder JB Straubel, have been meeting with major investors to reassure them that the company is in good hands. However, there has been criticism of Tesla’s board for not being independent enough and not controlling Musk’s actions. Tesla’s board chair, Robyn Denholm, who Musk chose for the role, has faced criticism over her own pay package and whether it affects her ability to oversee the company. Denholm has defended her compensation, calling it fair. The board, which includes Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch, is now considering adding an independent director to help strengthen its governance.
