Is Tesla looking for a new CEO? As Elon Musk focused on White House, board looked for his successor, says report

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Tesla’s board has reportedly explored potential successors for Elon Musk, prompted by his involvement with the Trump administration. Shareholders are concerned about declining sales and Musk’s political affiliations, which have led to protests and damage to Tesla facilities.

Tesla’s board members contacted multiple executive search firms approximately a month ago, seeking potential candidates to succeed Chief Executive Officer Elon Musk, according to a report by the Wall Street Journal, which cited sources familiar with the discussions.

The Wall Street Journal reported that the Tesla board’s initiative was triggered by Elon Musk’s substantial engagement with the Donald Trump administration, though the current progress of this succession planning effort remains unclear.

In a recent development last week, Musk announced his intention to substantially reduce his involvement with the Trump administration and increase his focus on managing Tesla.

Musk’s leadership at the Department of Government Efficiency (DOGE), focusing on reducing federal positions, remains a contentious element of Trump’s administration. His reduced presence at Tesla has worried shareholders, particularly as the company faces declining sales of its existing electric vehicle range.

Also Read | Elon Musk’s Tesla refunds early India bookings, leases office space: Signs of India entry soon?

According to a Reuters report, Musk’s alignment with right-wing political groups across Europe has sparked demonstrations against both Musk and Tesla, resulting in damage to company facilities and charging points throughout America and European nations.

According to the WSJ report, directors convened with Musk, requesting him to make a public statement confirming his increased commitment to Tesla’s operations.

The report indicated uncertainty regarding Musk’s – who serves on the board – awareness of succession strategies, or whether his commitment to increase involvement with Tesla has influenced these plans.

In response to global competitive pressures, Musk has shifted focus from developing an affordable electric vehicle platform to emphasising autonomous taxis and humanoid robots, positioning Tesla as an artificial intelligence and robotics enterprise rather than a traditional car manufacturer.

The company’s market value majorly relies on this strategic direction, with some shareholders expressing confidence that Trump’s influence will support this vision. Recently, federal authorities relaxed autonomous vehicle testing regulations, resulting in a positive impact on Tesla’s share price.

According to the WSJ, certain Tesla board members, including co-founder JB Straubel, have engaged with significant investors to provide assurance regarding the company’s management.

Also Read | ‘India a very hot market but…’: Elon Musk-led Tesla says 100% car tariffs make customers anxious

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.Read More

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