According to a recent report by the Wall Street Journal, Tesla’s board discreetly began searching for a potential successor to Elon Musk approximately a month ago. This step involved reaching out to executive search firms amidst challenges including protests, declining sales, and reduced profits, while Musk was involved in political activities in Washington.
The board members reportedly communicated with Musk, raising concerns about his divided focus. They advised him to devote more time to Tesla and to make a public commitment to this effect. According to the report, Musk did not resist these suggestions and subsequently informed investors that he would “allocate far more time to Tesla” starting in May.
Musk’s political engagements coincided with Tesla experiencing its first annual sales decline in over a decade, and the company’s brand image suffered among some consumers due to his political stance. The effects were substantial, with Tesla’s market value dropping from $1.5 trillion in December to approximately $900 billion.
Despite these difficulties, Musk expressed optimism about Tesla’s future during the most recent earnings call. The company reported a 71% decline in profit and a 9% reduction in revenue. Musk reassured investors by stating, “We’re not on the ragged edge of death, not even close.”
The status of the succession planning remains uncertain, as reported by the Journal. It is unclear whether Musk was aware of these efforts.
