Tesla board begins CEO search to succeed Elon Musk, WSJ

Tesla’s board is reportedly taking early steps to find a successor to CEO Elon Musk, according to a scoop from The Wall Street Journal. The report suggests the board is responding to a mix of shareholder anxiety, political distractions, and a rough stretch for the electric carmaker that’s seen its sales and stock price slide.

“Board members reached out to several executive search firms to work on a formal process for finding Tesla’s next chief executive,” WSJ reported, citing people familiar with the discussions.

Behind the Scenes: A Search New Tesla CEO Begins

Roughly a month ago, Tesla’s board began reaching out to executive search firms to explore potential replacements for Musk. The discussions are still early, and it’s unclear if Musk was initially aware of the move or if his recent promise to shift more attention back to Tesla changed anything.

What is clear is that the board is feeling the pressure. Tesla has stumbled through 2025 so far—sales are down, profits are shrinking, and the stock lost 36% in Q1 alone, its steepest quarterly drop in three years. Much of this has been blamed on waning demand for EVs, fiercer competition, and the fallout from U.S.–China tensions. But the elephant in the room is Musk himself.

Musk’s Many Hats—and Investors’ Frustrations

Musk has been busy—maybe too busy. Beyond Tesla, he’s also managing SpaceX, X (formerly Twitter), and leading a controversial government project under the Department of Government Efficiency (DOGE). That last one—focused on slashing federal jobs—has drawn fire from critics, sparked protests, and triggered calls to boycott Tesla.

Investors have noticed. Some have argued Musk’s attention is too divided and that Tesla is suffering because of it. In fact, The Wall Street Journal reports that the board urged Musk to publicly recommit to Tesla. Musk responded during Tesla’s Q1 earnings call, pledging to spend more time at the company starting in May. Whether that’s enough to stop the board’s quiet search is anyone’s guess.

Growing Doubts From Longtime Backers

Ross Gerber, a prominent Tesla investor, was among the first to say the quiet part out loud, calling for Musk to step down in March. He said Tesla has been “neglected for too long” while Musk focused on his political projects. Others echoed that concern, including investor Christopher Tsai, who said he hopes Musk’s government role is “short-lived.”

The board hasn’t exactly helped ease concerns. Led by chair Robyn Denholm, it’s faced ongoing criticism for being too loyal to Musk, especially after backing his now-infamous $56 billion compensation deal. Recent share sales by directors, including James Murdoch’s $13 million offload during a one-day crash in March, have only added to the skepticism.

Who Could Step In?

Replacing Musk won’t be easy. He’s not just the CEO—he’s been the face of Tesla since 2008 and helped build it into a global EV giant. He’s also long insisted that Tesla’s future goes beyond cars, pointing to big bets on robotics and AI.

Still, names are being floated. Internally, Tom Zhu, who runs Tesla’s China operations, is seen as a possible successor. JB Straubel, a Tesla co-founder now running battery startup Redwood Materials, is another option. From outside the company, candidates like BYD’s Stella Li, former Waymo CEO John Krafcik, and Hyundai’s José Muñoz have been mentioned.

The board has reportedly engaged search firms and is also looking to bring in an independent director—moves that hint at a broader shake-up of how the company is governed.

Will Musk Stay or Go?

Just because the board is exploring replacements doesn’t mean Musk is on his way out. He still owns a significant stake—12.8%—and has loyal fans who would likely push back hard against any leadership change. Legal fights could follow if the board makes a move without Musk’s support.

Still, the search sends a clear message: Tesla’s board is preparing for scenarios where Musk’s involvement might not be sustainable. And if sales keep falling or the stock keeps sliding, that conversation could turn urgent.

For now, Musk says he’s refocusing on Tesla. But the board isn’t waiting around.