Tesla board seeks new CEO to replace Elon Musk amid stock decline

Tesla’s board of directors initiated a search for a potential successor to CEO Elon Musk earlier this year, driven by plunging sales, a sharp decline in stock prices, and concerns over Musk’s focus on his government role as head of the Department of Government Efficiency. Board members reached out to several executive search firms, and discussions remain in early, exploratory stages, with no clear timetable or confirmation on whether the process is ongoing. The board also pressured Musk to publicly commit more of his time to Tesla, which he did during a recent earnings call, though he intends to maintain his government involvement. These succession planning efforts reflect longstanding shareholder anxiety over Musk’s divided attention and the brand damage caused by his political activities. The company is facing significant challenges, including a 71% plunge in first-quarter profits, increased competition, a sales boycott linked to Musk’s affiliations, and trade tensions between the U.S. and China. Neither Musk nor Tesla has publicly commented on the reported CEO search or its current status.