Tesla Board Initiates Search for New CEO as Elon Musk Faces Pressure

PALO ALTO, Calif. — Tesla‘s board of directors has reportedly begun searching for a new chief executive officer to replace Elon Musk as sales and profits decline.

The move comes amid growing concern over Musk’s involvement with political matters, particularly his work related to the Trump administration, which some believe is impacting the company’s brand. According to reports, the board reached out to search firms last month, signaling their intention to potentially replace Musk.

Simultaneously, the board met with Musk to emphasize the need for him to devote more time to Tesla. During a recent earnings call, Musk indicated he would return to focusing on Tesla, addressing investor worries and showing optimism regarding the company’s self-driving developments.

Despite this, the uncertainty surrounding leadership has contributed to fluctuations in Tesla’s stock value. On Wednesday, TSLA shares fell by 3.4% to close at $282.16, dropping below the critical 200-day moving average.

The situation raises questions about the board’s approach to succession planning, as they have historically been supportive of Musk’s leadership. Concerns remain that Musk’s departure could negatively affect Tesla’s stock performance.

As the stock is anticipated to decline further, analysts and investors will be closely monitoring the developments regarding Tesla’s executive leadership.