Tesla Board Moves to Replace Elon Musk as CEO

Tesla’s board has reportedly initiated steps to replace CEO Elon Musk as the company faces steep financial setbacks and growing concerns over his political ties.

According to The Wall Street Journal, the electric vehicle giant has opened a search for a new chief executive after Musk’s nearly 20-year tenure, amid a plunging stock price and backlash from his involvement with former President Donald Trump’s administration.

The board’s move follows Musk’s recent appointment as head of the Department of Government Efficiency (DOGE), a role that has drawn criticism and raised questions about his commitment to Tesla. The company’s shares have fallen nearly 40 percent since January, though they saw a modest rebound after the latest earnings report.

In response to board pressure, Musk issued a statement pledging to devote “far more of my time to Tesla,” a move reportedly intended to calm investor concerns. The board had asked him to make such a commitment or risk losing his leadership role.

Tesla has already engaged several executive search firms to explore potential successors. The urgency follows a troubling first quarter for the company, with profits dropping 71 percent — from $1.4 billion a year ago to just $409 million.

Adding to the drama, Donald Trump recently praised Musk’s work with DOGE but hinted that it may be time for him to “get back home to his cars.” During Tesla’s first-quarter earnings call, shareholders overwhelmingly focused their questions on Musk’s future and leadership.

The board’s actions signal a possible turning point for Tesla as it grapples with financial uncertainty and leadership instability.