Major foreign news outlets reported that the board of directors of the U.S. electric vehicle company Tesla began looking for a successor to CEO Elon Musk about a month ago.
On the 30th (local time), The Wall Street Journal (WSJ) reported that Tesla's directors contacted several executive search firms to prepare the official process for selecting the next CEO. The timing of the board's search for a successor began as the company's performance worsened and Musk began to focus on political activities, being appointed as the head of the Department of Government Efficiency (DOGE).
During this time, the Tesla board demanded that Musk spend more time at Tesla rather than the White House and publicly express his commitment to do so. Musk accepted this.
However, the WSJ noted it could not confirm whether the succession plan for Musk's successor is still ongoing. It also added that it is unclear whether Musk, who is also serving as a director, was aware of this movement and whether the promise to increase his time at Tesla influenced the search for a successor CEO.
Nevertheless, the board is reportedly pursuing a plan to add one outside director, according to the WSJ. Currently, Tesla's board consists of eight members, including Musk.
In response, Musk posted on X (formerly Twitter) that the WSJ intentionally published false articles, stating, 'It is a serious ethical violation not to include content that the Tesla board has clearly denied.'
Since Musk began his political activities, Tesla's stock price has fallen rapidly. As of the market close on April 30, Tesla's stock price has dropped 25.61% this year. Musk faced backlash from citizens after leading the DOGE in the Donald Trump administration, making substantial budget cuts in federal agencies and initiating massive layoffs. Criticism of Musk's unilateral decisions continued from within the White House and the Republican Party.
Resentment towards Musk has led to a boycott of Tesla and attacks on Tesla stores, vehicles, and charging stations. As a result, Tesla's sales declined sharply worldwide, with first-quarter revenue and net profit down 9% and 71%, respectively, compared to the previous year.