Tesla’s board of directors recently defended Elon Musk amid growing concerns from investors about his long absences, political views, and Tesla’s decreasing sales and profits. This came after a report by the Wall Street Journal saying the board had discussed replacing Musk, which Tesla board chair Robyn Denholm denied. Denholm also faced criticism for her high pay and for not holding Musk accountable to shareholders.
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Tesla’s board is in a tough spot because Musk’s leadership is so closely tied to the company’s success. Musk runs five other companies and has spent more time recently supporting former President Donald Trump, which has upset some of Tesla’s customers who have more liberal views. Despite this, many believe that Musk’s personal vision and ideas—like robot taxis and humanoid robots—are key to Tesla’s high stock value. However, these promises haven’t yet been delivered.
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Denholm said the board is confident that Musk can still lead Tesla and achieve its growth goals, even though Tesla’s car sales have been dropping, especially in Europe, where Musk’s and Trump’s politics have made the company less popular.
Tesla’s board has even suggested that Musk consider bringing in a strong day-to-day manager while he continues to serve as the figurehead. This approach has worked at Musk’s other companies, like SpaceX, where Gwynne Shotwell is the president and COO. However, Musk has rejected this idea for Tesla.
Replacing Musk would be incredibly difficult, according to experts. It would require someone who could fill Musk’s large shoes, manage Tesla’s struggling EV business, and still push forward with Musk’s long-promised projects like the robotaxi network. Some believe it’s nearly impossible to replace Musk because his influence is so strong.
Tesla’s executive team has also shrunk over the past year as Musk has shifted the company’s focus from electric vehicles to robotaxis and artificial intelligence. Some of Tesla’s senior leaders disagreed with this shift, and many left the company. Tesla investors, like Gary Black, say there is no one within the company who could replace Musk’s skills.
Some investors worry that if Musk were replaced, the company could face difficulties. Musk has a strong influence on Tesla’s board, and many feel that Tesla’s high stock price is tied to people’s admiration for Musk. If Musk were to leave, the company might struggle, just like General Electric did after its legendary CEO Jack Welch left.
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However, some experts believe that Tesla could continue to succeed without Musk. With a strong lineup of electric vehicles and growing technologies like self-driving cars, Tesla may just need better execution rather than more big ideas.
