Elon Musk
Elon Musk: Tesla directors have spoken to multiple executive search agencies some four weeks ago to identify CEO succession opportunities, Wall Street Journal said. The talks, it was claimed, were occasioned by a worry about the rising engagement of Musk with Trump administration.
Tesla stock price fell over 3% on Wednesday following a news report that the company’s board had launched a search for an eventual replacement to CEO Elon Musk. Tesla share price closed down 3.38% to $282.16. During the after-hours, Tesla shares rose by 0.13%
Tesla board members had approached several executive search firms about a month ago to consider CEO succession plans, according to a Wall Street Journal report quoting individuals close to the matter. The discussions were said to be initiated due to concerns over Musk’s growing association with the Trump administration.
The status of the succession planning by the board is unclear now, said the report.
The report indicated that members of Tesla’s board met with Musk and asked him to make a public promise to spend more time at the company. Still, it is unclear whether Musk, who is also a member of the board, knew about the succession planning or whether his reaffirmed commitment to Tesla has affected those deliberations.
Last week, Musk said he would cut back significantly from his work in the Trump administration to focus on spearheading his portfolio of companies, including Tesla.
The assignment as head of the Department of Government Efficiency (DOGE)—an organization established to cut federal jobs—has not been met with positive responses from investors, especially during Tesla’s slipping sales of its outdated electric vehicle lineup.
Also, Musk’s public endorsement of far-right political parties in Europe has sparked protests and acts of vandalism against Tesla showrooms and charging points throughout the US and Europe.
Trend of Tesla’s Stock Price
Tesla share price has risen 9% in the last month, providing some respite after a tough beginning to 2025, when the stock has fallen 25%. Although down year to date, Tesla is a solid long-term performer. In the last year, Tesla share price has risen 54%, and over five years, it has provided a staggering return of 500%.
Is Tesla thinking of changing its leadership? Elon Musk may be replaced as CEO, according to a report.
Elon Musk: Tesla, one of America’s top companies in electric vehicles (EVs), several months ago approached many executive search companies to identify a replacement for CEO Elon Musk, WSJ said, quoting sources, and noting the succession planning status could not be determined. Based on reports, the EV company has suffered dropping profits and sales, as investor anxiety over Musk’s position at the Department of Government Efficiency (DOGE), where he led efforts for federal job reductions, has intensified.
Elon Musk previously pledged to “considerably” scale back from his activity in DOGE between May and doing a day or two of work weekly, he told investors during a conference call, Reuters had reported.
His 130-day stint as a special government employee in the Trump administration runs through late May.
DOGE is an advisory panel created toward the end of President Donald Trump’s second term to cut government spending and improve the efficiency of government operations.
The report further stated it was not certain if Musk, who is on the board too, was kept informed about succession planning.
His political activism has fueled international indignation and boycotts of Tesla’s vehicles. In February, in a White House appearance, the tech mogul had denied orchestrating a “hostile takeover” of the US government. “The people voted for major government reform, and that’s what the people are going to get. That’s what democracy is all about,” he had stated.
