Tesla board searching for new CEO to replace Elon Musk: Report

Preparations are reportedly underway to replace Elon Musk as the Chief Executive Officer of his automotive company, Tesla. The Tesla board has approached several executive search firms to look for a suitable successor for the company, said a report by the Wall Street Journal citing people familiar with the discussions.

Elon Musk focus on his White House stint is one of the reasons the Tesla board is looking to replace him. (File/REUTERS)

This eagerness to replace Musk at the chief executive role at his own company comes amid his White House stint and plunging Tesla stocks, the report said. The move also comes as tensions within the firm are rising due to deteriorating sales and profits, and because Musk’s time is mostly being spent in Washington

Elon Musk, who campaigned aggressively for Donald Trump during his presidential campaign, has been given a special role at the White House. He has been tasked with running the Department of Government Efficiency (DOGE), aimed to slash federal spending and make sure that all federal departments in the US are working efficiently.

While the Tesla board has approached several firms to look for a suitable candidate for the big job, the focus has been narrowed to a major search firm, the report said citing people familiar with the discussions. How far the process of searching for Musk’s successor has reached is not yet known. It is also not certain whether Musk, who himself is a part of the board, is aware of the big move or not.

As Tesla stocks were plunging and Musk’s attention and time were unevenly divided between the firm and Washington, the board had reportedly asked him to shift his focus back to Tesla during a meeting.

Tesla’s first-quarter profit has suffered a huge plunge of 71% this year. Following this, Musk reportedly reassured investors that he would spend more time working with the company. “Starting next month, I’ll be allocating far more of my time to Tesla,” the report quoted Musk as saying during a conference call about Tesla earnings.

US President Donald Trump also hinted at Musk wanting to return to working more with Tesla during a board meeting on Wednesday. While thanking Musk for his service at the White House, Trump reportedly said, “You know you’re invited to stay as long as you want…I guess he wants to get back home to his cars.”

Musk’s proximity to Trump not only collided with Tesla’s financial challenges in 2024 but also hurt his brand image. The company reportedly recorded its first annual sales decline last year in over a decade. Meanwhile, Tesla’s Cybertruck was also met with ridicule and became the butt of the joke over its design.