Tesla Board Explores New CEO Options as Elon Musk Strengthens Ties with Trump

According to the Wall Street Journal, Tesla board members contacted several executive search firms about a month ago to look for potential successors to CEO Elon Musk. The report stated executive board members decided on the leadership change because they worried about Musk's Trump administration relationships and management position at the Department of Government Efficiency (DOGE).

Major executive recruitment consultants have received the board's selection for helping with their search process based on WSJ information. Succession planning exists in an unstable condition at present. The board of Tesla remains ambiguous about whether Musk understood the initiative and if his recent Tesla dedication led to the change.

With Musk heading Tesla's CEO position for nineteen years a new leadership would introduce a major change to the company. The WSJ reports that Tesla's board of eight members needs to find an additional independent director. Members from Tesla's board of directors including co-founder JB Straubel continue to meet with primary investors to verify the company maintains operational resilience.

Tesla faces a decline amid political and trade pressures

Critics strongly denounce Elon Musk's support of the Trump administration and his campaign for cutting federal spending. People worldwide have staged protests outside Tesla showrooms to protest against his participation in government staff reductions. The sales operations at Tesla have faced disruptions because several cities documented employee strikes combined with vandalism incidents.

Tesla finds itself in a crucial situation because Elon Musk engages in politics. Electric vehicle sales at Tesla declined for the first time during 2024 after enduring more than a ten-year period of growth. Commercial operations at the company face difficulties due to alterations in trade policy regulations. Tesla showed a 13% reduction in delivery numbers for the first quarter during its recent report.

Musk plans to spend less time at DOGE

Elon Musk announced last week that he will spend less time running US President Donald Trump's DOGE starting this month. The announcement came as Tesla reported a 71% drop in quarterly profit and a 20% decrease in automotive revenue.