Tesla board members have reportedly started the process of finding a successor for CEO Elon Musk. This move comes after concerns were raised about Musk’s heavy involvement with the Trump administration and his lack of focus on running Tesla. The board reached out to several executive search firms about a month ago to begin the search for a new CEO.
Musk recently announced that he would be cutting back on his time spent with the Trump administration and would be dedicating more time to running Tesla. This decision was likely influenced by the declining sales of Tesla’s EV lineup and concerns from investors about Musk’s divided attention.
One of the most controversial aspects of Musk’s involvement with the Trump administration has been his work at the Department of Government Efficiency (DOGE), where he has led efforts to cut federal jobs. Additionally, Musk’s embrace of far-right politics in Europe has led to protests and vandalism at Tesla showrooms and charging stations.
The board reportedly met with Musk to discuss his public commitment to spending more time at Tesla. However, it is unclear if Musk was aware of the succession planning or if his pledge to focus more on Tesla has impacted the search for a new CEO.
Tesla is currently facing increased competition in the global market, leading Musk to pivot towards a future focused on AI and robotics rather than just electric vehicles. This shift in focus has been met with mixed reactions from investors, with some believing that Musk’s vision for Tesla’s future will be furthered by his involvement with the Trump administration.
Federal regulators recently eased rules for testing autonomous vehicles, which has had a positive impact on Tesla’s stock. Some Tesla directors, including co-founder JB Straubel, have been meeting with investors to reassure them that the company is in good hands despite the leadership transition.
Activist investors have criticized Tesla’s board for lacking independence and failing to hold Musk accountable. Board chair Robyn Denholm, who was hand-picked by Musk, has also faced scrutiny over her pay package and its potential impact on her oversight of Tesla and Musk. Denholm has defended her pay as fair and has dismissed allegations of compromised oversight.
Overall, Tesla is at a crucial juncture as it navigates leadership changes and shifts its focus towards AI and robotics. The search for a new CEO will be a key step in determining the company’s future direction.
