WSJ: Tesla’s board has initiated the process to replace Elon Musk as CEO
Washington, May 1 (Hibya) - According to a Wednesday night report by the Wall Street Journal, citing multiple anonymous sources, Tesla’s board of directors contacted several executive search firms in March to begin the process of finding a new CEO to replace Elon Musk at the troubled electric vehicle company.
The report notes that it is still unclear what the timeline for Musk’s potential removal might be, or whether the search is ongoing.
The striking revelation indicates that the board’s patience has worn thin as Tesla’s struggling stock price (TSLA), which dropped as much as 45% this year and only partially recovered with the broader market rebound, suffers due to Musk spending significant time on White House Government Efficiency Department (DOGE) initiatives.
According to Tesla’s report last week, the company’s sales and profits fell in the first quarter. The company announced that profits dropped by 71%. This shocking report was overshadowed by Musk’s announcement on the same day that he would step down from his government role and return to Tesla.
The paper noted it’s unclear whether Musk’s announced return affects the status of the succession planning. Musk and Tesla did not respond to requests for comment.
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