Tesla board hunts for replacement CEO amid Musk’s expanding links to Trump
Given Elon Musk’s deepening relationship with Trump, the Tesla board is looking for a new CEO. According to a Wall Street Journal article, Tesla board members reached out to several executive search firms approximately a month ago in order to investigate possible successors to CEO Elon Musk. According to the report, Musk’s involvement in managing the Department of Government Efficiency (DOGE) and his growing connections with the Trump administration were the driving forces for the action.
The WSJ story claims that the board has selected a top executive search firm. But it’s still unclear how the succession planning is going right now. Additionally, it’s unclear if Musk, a board member of Tesla, was aware of the project or if the process has been impacted by his recent pledge to devote more time to Tesla. Musk has been in charge of Tesla for almost 20 years, so any change in leadership would be huge. The WSJ story claims that the eight-member board of Tesla is also looking to add an independent director. According to reports, several board members—including co-founder JB Straubel—have been meeting with significant investors to reassure them of the health of the business.
Musk has come under heavy fire for his support of federal spending cutbacks and his connections to the Trump administration. Demonstrators have protested his involvement in government employment layoffs at Tesla stores worldwide. Employee walkouts and vandalism have been recorded in a number of locations, which has affected Tesla’s sales. Musk’s political engagement coincides with a difficult period for Tesla. Sales of Tesla’s electric vehicles had their first yearly drop in more than ten years in 2024. Additionally, the business is struggling with the effects of changing trade regulations. Tesla revealed a 13% decline in Q1 deliveries earlier this month.
Musk said he will work at DOGE less. Musk said last Monday that starting this month, he will be spending less time managing US President Donald Trump’s DOGE. The news was released at a time when Tesla’s quarterly profit had dropped 71% and its car sales had dropped 20%.
