Amid slowing sales, a plunging stock price, and growing investor concerns over Elon Musk’s political focus, Tesla‘s board has reportedly begun CEO succession planning. The Wall Street Journal broke the news, though neither Tesla board members nor CEO Elon Musk have publicly confirmed the development.
According to the report, Tesla board members contacted executive search firms roughly a month ago to initiate a formal search for a potential successor. However, after the news broke, Tesla and Musk publicly denied the allegations.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
— Elon Musk (@elonmusk) May 1, 2025
The speculation comes as Musk faces mounting pressure to refocus on Tesla. During the company’s first-quarter earnings call, Musk announced that he would step back from his responsibilities in Washington and allocate more time to the automaker.
Musk recently took on a prominent political role, becoming a high-profile figure in President Trump’s administration as head of the Department of Government Efficiency (DOGE). While leading efforts to slash federal spending and reduce the federal workforce, Tesla was facing steep declines. In 2024, the company recorded its first annual sales drop in over a decade. In Q1 2025, Tesla’s net income fell by 71% to $409 million, down from $1.39 billion a year earlier. The company’s core business also took a hit, with automotive revenue falling 20%.
Investor unease has been compounded by Musk’s public behavior, which has damaged Tesla’s brand. The backlash has been severe and widespread. The “Tesla Takedown” movement gained traction, with protests erupting across the U.S. and Europe. Acts of vandalism targeting Tesla cars and dealerships have increased. At the same time, some owners have gone as far as applying anti-Elon bumper stickers and magnets to their vehicles to distance themselves from Musk’s political entanglements.
The ongoing speculation about CEO succession highlights a growing concern among Tesla stakeholders regarding whether Musk is still the right leader to guide the company into its next chapter. However, as Musk steps back from his involvement in Washington and dedicates more energy to Tesla, he may be able to address stakeholders’ concerns and help steer the company back on track.
