# Tesla Board Reportedly Explored CEO Succession Amidst Musk’s Washington Foray and Tumbling Sales

## Tesla Board Reportedly Explored CEO Succession Amidst Musk’s Washington Foray and Tumbling Sales

Tesla’s board of directors reportedly initiated a discreet search for a potential successor to Elon Musk approximately a month ago, according to a new report by the Wall Street Journal. This move came as the electric vehicle giant grappled with mounting challenges, including protests, declining sales figures, and shrinking profits. Simultaneously, Musk was actively engaged in lobbying efforts in Washington, D.C., focused on reducing government spending.

The board’s concerns reportedly stemmed from Musk’s divided attention, with members expressing the need for him to dedicate more time to Tesla. The WSJ report indicates that the board met with Musk, urging him to publicly reaffirm his commitment to the company. Notably, Musk did not reportedly resist this request and subsequently assured investors he would “allocate far more time to Tesla” starting in May.

Musk’s involvement in government affairs and his increasingly polarized public persona have seemingly impacted Tesla’s performance. The company experienced its first annual sales decline in over a decade, and the brand’s image has been tarnished among some consumers due to Musk’s political affiliations. The repercussions have been significant, with Tesla’s market value plummeting from a peak of $1.5 trillion in December to approximately $900 billion today.

Despite these headwinds, Musk maintained an optimistic outlook during last week’s earnings call. While the company reported a substantial 71% drop in profits and a 9% decrease in revenue, Musk reassured investors, stating, “We’re not on the ragged edge of death, not even close.”

The current status of the succession planning remains uncertain, according to the Wall Street Journal. It is also unclear whether Musk was even aware of the board’s efforts to identify potential replacements. The move highlights the board’s growing concern over Tesla’s trajectory and the need for focused leadership amidst challenging market conditions.