Is Tesla Board Searching for Elon Musk’s Replacement Amid Plunging Profits?

As Musk devotes more time to his White House role under President Trump, Tesla’s board initiates succession talks following financial setbacks and image concerns.

Washington / Palo Alto, May 1:
In a potentially seismic shift for the electric vehicle industry, the Tesla board is reportedly exploring options to replace Elon Musk as CEO, according to a report by the Wall Street Journal. The move follows concerns over Musk’s growing political commitments and Tesla’s sharp financial decline.

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Sources familiar with the matter told the publication that the board has already approached several executive search firms, and has narrowed down discussions to one major firm. However, it remains unclear how advanced the succession planning is — or whether Musk himself is fully aware of the development.

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Musk’s White House Role Raises Conflict Concerns:

Elon Musk, who campaigned aggressively for Donald Trump during the 2024 US presidential elections, now holds a significant position in the administration. He heads the newly formed Department of Government Efficiency (DOGE), tasked with cutting federal spending and improving bureaucratic productivity.

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This high-profile Washington role has resulted in reduced attention to Tesla, which has suffered from deteriorating sales, internal tensions, and a 71% drop in quarterly profits. Tesla also witnessed its first annual sales decline in over a decade, alongside brand damage tied to Cybertruck mockery and Musk’s political affiliations.

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Board’s Growing Concern Over Priorities:

Tesla board members reportedly asked Musk in a recent meeting to refocus his attention on the company. During Tesla’s latest earnings call, Musk acknowledged the growing unease and stated:

“Starting next month, I’ll be allocating far more of my time to Tesla.”

Even President Trump, during a White House board meeting, hinted at Musk’s desire to return:

“You know you’re invited to stay as long as you want… I guess he wants to get back home to his cars.”

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What’s Next for Tesla?

While no final decision has been made about Musk’s future, the search for a successor appears to be in motion, a move that could mark a historic leadership transition at one of the world’s most iconic companies.

As speculation mounts, industry analysts are closely watching whether Musk will scale back his public-sector role — or if Tesla will be forced to embrace a future without its visionary founder at the helm.

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Elon Musk Tesla CEO, Tesla board news, Elon Musk White House, Department of Government Efficiency, Tesla Q1 profits, Trump Musk connection, Tesla leadership change, DOGE department, Tesla stock plunge, Elon Musk replacement