According to the Wall Street Journal, Tesla's board is seriously considering finding a successor to CEO Elon Musk and has contacted several executive search firms to establish a formal process for finding the next CEO. The board reportedly began this search a month ago in the face of declining sales and profits, actively seeking potential successors to Musk.

As Musk's focus on Tesla has noticeably decreased, board members have expressed concern. Some directors have urged Musk to refocus on company operations. Last week, following a 71% drop in Tesla's first-quarter profits, Musk reassured investors that he would return to the company soon to handle business personally. However, it remains unclear how this will affect the board's succession plans or whether Musk is aware of them. Musk did not respond to media inquiries about the reports.

Musk's close ties with Trump have triggered consumer backlash. With Tesla facing its first annual sales decline in over a decade in 2024, the company has had to repeatedly cut vehicle prices to stimulate demand, further squeezing profit margins. Although Musk has stated he remains dedicated to advocating for lower tariffs, he acknowledged that "there's only so much I can do; the final decision rests with the President." Tesla's market value once surged to a historic high of $1.5 trillion in December 2023 but has since fallen to approximately $900 billion amid a series of negative factors. Investors are currently anxious about Musk's potential departure.