Board Launches Quiet CEO Search
Tesla's board of directors has reportedly started looking for a possible replacement for CEO Elon Musk. The decision follows months of concern among investors and insiders about Musk’s divided focus between Tesla and his other commitments — especially his role in the U.S. Department of Government Efficiency (DOGE), which he began overseeing recently.
Sources close to the company told The Wall Street Journal that board members quietly started working with executive search firms several weeks ago to identify potential successors.
Financial Worries Add to the Pressure
Tesla has had a rough financial start in 2025. The company reported a 71% drop in profits during the first quarter — earning $409 million, down from $1.4 billion in the same period last year. The company has also seen declining electric vehicle sales and stiff competition from rivals, particularly Chinese automakers like BYD.
The drop in Tesla’s stock price and shrinking margins have sparked concern among investors, many of whom feel that Musk's focus on side projects and political roles is harming Tesla’s long-term value.
Musk Responds, Promises Renewed Focus on Tesla
After reports of the board's CEO search surfaced, Musk pushed back by pledging to shift his attention back to Tesla. During a recent earnings call, he said he would cut back on his government work and start dedicating more time to the company in May.
Musk also emphasized plans to roll out new Tesla models and upgrade existing manufacturing operations — efforts he says will drive the company forward despite current headwinds.
Public Denial from Tesla's Board
Despite media reports, Tesla’s board has denied that a CEO replacement search is underway. Board Chair Robyn Denholm issued a public statement saying there is no active effort to replace Musk and that the board continues to support his leadership.
Still, insiders say that even though no decision has been made, the board’s recent actions suggest they are at least preparing for the possibility of a leadership change.
Who Could Replace Elon Musk?
Several names have surfaced as potential candidates if Musk were to step aside or transition to a different role:
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JB Straubel: Tesla co-founder and former CTO, now CEO of battery company Redwood Materials, and currently a Tesla board member.
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Tom Zhu: Tesla's Senior Vice President of Automotive, known for scaling production at Tesla's China gigafactory.
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Stella Li: Executive Vice President at Chinese EV giant BYD.
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John Krafcik: Former CEO of Waymo, with strong experience in autonomous vehicle development.
None of these individuals have confirmed their interest, but industry experts say all would bring strong leadership and operational skills to Tesla.
What’s Next for Tesla?
For now, Musk remains Tesla’s CEO, and it’s unclear if the board will move forward with any formal transition. However, the situation reflects growing pressure on Musk to re-focus his efforts and reassure investors who want stability at the top of the EV company.
