Tesla has initiated a search for a new CEO, marking a pivotal moment for the electric vehicle giant as it grapples with a sharp downturn in profits, declining sales, and growing backlash over Elon Musk’s controversial involvement in politics.
The move follows weeks of investor unrest and a steep 71% drop in first-quarter profits, with earnings falling to $409 million, down from $1.4 billion a year earlier. Tesla shares have plunged nearly 40% since January, though some recovery followed the earnings announcement.
According to The Wall Street Journal, the company’s board began exploring CEO succession earlier this year as concerns mounted over Musk’s dual role as head of Tesla and his political appointment to lead the Department of Government Efficiency (DOGE) under President Trump. The search reportedly began without Musk’s prior knowledge.
At the urging of the board, Musk announced plans to step back from his political role starting in May and devote “far more of my time to Tesla.” Speaking during Tesla’s earnings call, Musk acknowledged the toll his foray into Washington has taken on the company’s brand and share price.
“Starting next month, my time allocation to DOGE will drop significantly,” he said, while admitting he still plans to contribute one or two days a week.
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