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Wall Street Journal: Tesla’s board began the process to replace Elon Musk as CEO

  • CNN
  • April 30, 2025
CNN

 — 

Tesla's board in March contacted multiple executive placement firms to begin a search process for a new CEO to replace Elon Musk at the helm of the embattled electric car company, the Wall Street Journal reported Wednesday night, citing multiple anonymous sources.

It's not clear what the time table would have been for Musk's ouster or whether those search efforts remain in place, the Journal reported.

The stunning revelation suggests that Tesla's moribund stock price (TSLA), which tumbled as much as 45% this year before recovering somewhat amid a broader stock market rebound, wore on the board's patience as Musk spent a significant amount of his time working for the White House's Department of Government Efficiency initiatives.

Sales and profit plunged in the first quarter, Tesla reported last week. The company announced earnings nosedived 71%, a shocking revelation that was perhaps overshadowed by Musk's announcement the same day that he would be stepping back from his government role and returning to Tesla.

The Journal said it was unclear whether Musk's announced return altered the status of the succession planning. Musk and Tesla did not respond to a request for comment.

It is also unclear if Musk, who is also a Tesla board member, was aware of the search effort, the Journal said.