Tesla’s board has reportedly begun exploring options for a new chief executive amid mounting concerns over Elon Musk’s growing list of responsibilities and the company’s recent downturn.
According to a report from The Wall Street Journal, directors began contacting executive search firms about a month ago, initiating a quiet search for someone who could eventually step in to lead the electric car giant.
The timing comes as Tesla grapples with a range of challenges, including its first annual drop in sales in more than ten years and a sharp decline in profits. The company’s market value has also taken a major hit—plunging from $1.5 trillion at the end of last year to around $900 billion today. At the same time, Musk has been devoting significant energy to government affairs in Washington, pushing for deep cuts in federal spending through his role with the Department of Government Efficiency (DOGE).
Board members reportedly held a private meeting with Musk, voicing concerns over his divided focus. They urged him to dedicate more time to Tesla and to make that commitment public. Musk did not resist and later told investors he would increase his involvement with Tesla starting in May.
While his influence remains strong, some board members appear uneasy about the future. It is not clear whether Musk was aware of the board’s outreach to recruitment firms or how far the search has progressed. What is clear is that the company’s recent struggles—including a 71% decline in profit and a 9% revenue dip reported last week—have sparked a new level of urgency among Tesla leadership.
Musk struck a confident tone during Tesla’s recent earnings call, brushing off concerns about the company’s health. However, his political moves have drawn criticism from some customers, affecting Tesla’s public image at a time when competition in the electric vehicle market is growing fast.
For now, Musk remains at the helm of the company he’s led for nearly two decades. But behind the scenes, Tesla’s board appears to be preparing for a future that may not include him at the top.