According to a scoop in The Wall Street Journal, Tesla’s board is reportedly taking early steps to find a successor to CEO Elon Musk. The report suggests that the board corresponds with shareholder uncertainty, political distraction, and a rough stretch mix of electric car manufacturers looking at sales and stock price slides.
“Board members contacted several executive search companies to tackle a formal process to find Tesla’s next CEO,” WSJ reported, citing people familiar with the discussion.
Behind the scenes: Searching for a new Tesla CEO begins
About a month ago, Tesla’s board began reaching out to executive search companies to explore potential alternatives to masks. The debate is still too early, and it is unclear whether Musk was first aware of the move or whether his recent promise to shift his attention to Tesla has changed anything.
What’s clear is that the board feels pressured. Tesla has come across it in 2025 so far. SALES has declined, profits have shrunk, losing 36% in the first quarter alone, the sharpest quarterly decline in three years. Much of this has been criticized for demand for EVs, fierce competition and fallout from US-China tensions. However, the elephant in the room is Musk himself.
Many Musk hats and investors’ frustration
Musk was busy, but he was too busy. Beyond Tesla, he manages SpaceX, X (formerly Twitter) and leads controversial government projects under the Ministry of Government Efficiency (DOGE). The last one focused on cutting back on federal jobs, sparking fire from critics, protests and a call for boycott Tesla.
Investors noticed. Musk’s attention is so divided that some argue that Tesla is suffering for it. In fact, the Wall Street Journal reports that the board urged masks to publicly recommend Tesla. Musk responded during Tesla’s first quarter revenue calls and pledged to spend more time with the company from May. It’s no one’s guess whether that’s enough to stop a quiet search on the board.
Long-time supporters are growing doubt
Ross Gerber, a well-known Tesla investor, was one of the first to yell the quiet part out loud in March, calling for him to resign from masks. He said Tesla has been “neglected for too long” while Tesla focused on his political projects. Others reflected their concerns, including investor Christopher Tsai. He said he hopes that Musk’s government role will be “short-lived.”
The board has not exactly helped ease concerns. Leading by Chairman Robin Denholm, he faces ongoing criticism for being too loyal to Musk, especially after he backed his now-rich $56 billion compensation deal. Recent stock sales by the director, including a $13 million offload of James Murdoch during the March 1 crash, added to skepticism.
Who can intervene?
Replacing a mask is not easy. He’s not just the CEO. He has been the face of Tesla since 2008 and helped build it into the global EV giant. He has also long argued that Tesla’s future goes beyond cars and points to big bets on robotics and AI.
Still, the name comes to mind. Internally, Tom Zoo, who runs Tesla’s Chinese operations, is seen as a potential successor. Tesla co-founder JB Straubel runs battery startup Redwood Materials, but another option. From outside the company, candidates such as Byd’s Stella Li, former Waymo CEO John Krafcik and Hyundai’s José Muñoz have been mentioned.
The board is reportedly involved with the search company and is trying to introduce an independent director. This suggests a broader reform of how the company is governed.
Will Musk stay or go?
Just because the board is exploring alternatives doesn’t mean masks are leaving. He still owns a 12.8% important stake and has loyal fans who are likely to push back hard against leadership changes. If the board moves without mask support, the legal battle could continue.
Still, the search sends a clear message. Tesla’s board is preparing for a scenario in which mask involvement may not be sustainable. And if sales continue to decline or inventory continues to slide, the conversation can become urgent.
For now, Musk says he’s refocusing Tesla. But the board is not waiting.
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