Tesla Board Initiates Search for Elon Musk's Successor

In a recent development, members of Tesla's board have reportedly begun searching for a successor to CEO Elon Musk, according to sources cited by the Wall Street Journal. The board is said to have reached out to several recruitment firms in their quest for a new leader.

This move comes amid challenges faced by Tesla, particularly in the European market, where the company has seen a significant decline in vehicle registrations. Data from the European Automobile Manufacturers Association indicates a staggering 45% drop in registrations for the first quarter of 2025 compared to the same period last year.

Elon Musk, who has long been a polarizing figure due to his outspoken nature and controversial political affiliations, especially as a cost-cutting advisor to the Trump administration, has faced scrutiny for the company's recent performance. Tesla initially did not respond to inquiries regarding these developments. However, Musk took to social media platform X to refute the claims, labeling the Wall Street Journal report as a severe breach of ethics and stating that the board had not initiated any search for his successor.

Hours after Musk's rebuttal, Tesla's board chair, Robyn Denholm, issued a statement asserting that the board is confident in Musk's ability to continue driving the company's growth plans forward. Despite Musk's pivotal role in Tesla's ascent over the last two decades, the company has recently experienced a downturn that has led analysts to speculate on the potential impact of Musk's political engagements on consumer interest.

Industry analyst Dan Ives from Wedbush noted that Musk's political views might have deterred some potential Tesla buyers, estimating a long-term reduction in demand for Tesla vehicles by as much as 15 to 20 percent. This decline comes as Musk announced plans to dedicate more time to Tesla, reducing his involvement in government roles.

In light of the ongoing challenges, Tesla has firmly dismissed rumors regarding its leadership and future, emphasizing its resilience and the support it receives from its employees and customers. In a statement released shortly before these events unfolded, the company reaffirmed its commitment to its mission, asserting that it has faced many challenges in the past and will continue to thrive.

As the situation develops, stakeholders and analysts will be closely monitoring Tesla's next steps and any potential changes in leadership.