The Wall Street Journal (WSJ) reported on the 30th that Tesla’s board of directors began the search for a successor to CEO Elon Musk about a month ago, amid growing tensions within the company and a decline in its performance. As Musk’s involvement in the company waned, particularly after he was appointed head of the Department of Government Efficiency (DOGE), tensions increased. At the time, the board reportedly urged Musk to spend more time at Tesla and to publicly commit to doing so, a request Musk accepted.
Tesla’s poor performance was revealed on the 22nd of last month, when the company announced a 71% year-on-year drop in net profit. Following this, Musk surprised the market by announcing during a conference call that he would devote more time to Tesla starting the next month. This announcement temporarily boosted the company’s stock price.
However, the WSJ was unable to confirm whether the search for Musk’s successor was still ongoing or had been put on hold. As of April 30, Tesla’s stock had fallen by 25.61% this year, closing at $282.16, lower than the $288.53 price on November 6, the day when President Trump’s election was confirmed. Musk’s recent leadership in DOGE, following Trump’s direction, has been met with criticism due to significant budget cuts and large-scale layoffs in federal agencies, all while citing the need to “reduce wasteful and fraudulent spending.”