Tesla’s board has reportedly taken action to replace Elon Musk as CEO following a dramatic decline in the company’s stock price and growing concerns over his controversial involvement with the Trump administration. After two decades of Musk leading the electric vehicle company, the board has begun searching for a new CEO, as The Wall Street Journal revealed. This move comes on the heels of praise from Donald Trump for Musk’s work with DOGE, though Trump suggested Musk might want to focus on “getting back home to his cars.”
In response, Musk made a public commitment to devote more time to Tesla, agreeing to the board’s request to prioritise his role as CEO. Meanwhile, the company’s performance has taken a hit, with first-quarter profits plummeting by 71%, down to $409 million from $1.4 billion a year ago. Tesla’s stock has also seen a nearly 40% decline since January, a situation that worsened as Musk took on additional roles, including heading the Department of Government Efficiency (DOGE) and making frequent appearances with Trump. While Tesla’s stock showed signs of recovery after the earnings report, the company’s leadership situation remains uncertain.
As part of the leadership transition, Tesla has contacted multiple executive search firms to assist in finding Musk’s successor. The pressure on Musk to focus on Tesla has become evident, with investors and the board eager to see a return to strong leadership amid the company’s financial challenges.
