Tesla Board Searched for Musk Successor - Reports

Tesla Board Explored Potential Successors to Elon Musk

A recent report published by the Wall Street Journal indicates that Tesla’s board of directors initiated a discreet search for a possible replacement for Elon Musk approximately one month ago.

This action coincided with a period of challenges for the automaker, including declining sales figures, reduced profitability, and public demonstrations.

Concerns Regarding Musk's Focus

Members of the board reportedly engaged in discussions with Musk, voicing their apprehension about his divided attention.

They emphasized the necessity for him to dedicate increased time and effort to Tesla and to make a public pledge to do so.

According to the Journal, Musk did not object to these concerns and subsequently informed investors that he would prioritize Tesla, allocating significantly more of his time to the company beginning in May.

Tesla's Response and Allegations

Robyn Denholm, chair of Tesla, released a statement asserting that the claim of approaching recruitment firms was “absolutely false.”

She further stated that this information was disseminated to the media prior to the report’s publication.

Musk echoed this sentiment, characterizing the situation as an “EXTREMELY BAD BREACH OF ETHICS.”

The Wall Street Journal maintains that Tesla did not respond to inquiries from its reporters.

Impact of Musk's External Activities

Musk’s involvement in governmental affairs contributed to Tesla’s first annual sales decrease in over ten years.

Furthermore, his political stances reportedly impacted the company’s brand perception among certain consumers.

The consequences have been substantial; Tesla’s market capitalization has fallen from $1.5 trillion in December to approximately $900 billion presently.

Musk's Optimism Despite Challenges

Despite these difficulties, Musk expressed a positive outlook regarding Tesla’s future during the recent earnings call.

The company reported a 71% decline in profit and a 9% reduction in revenue.

“We’re not on the ragged edge of death,” Musk assured investors, “not even close.”

Uncertainty Surrounds Succession Planning

The current status of the succession planning process remains ambiguous, as reported by the Journal.

It is also unclear whether Musk, who has led Tesla for nearly two decades, was aware of the board’s efforts.

This article has been updated to incorporate statements from both Tesla and the Wall Street Journal.