# Tesla’s Board Reportedly Explored Succession Options Amidst Musk’s Washington Foray

## Tesla’s Board Reportedly Explored Succession Options Amidst Musk’s Washington Foray

Tesla’s board of directors reportedly initiated a search for a potential successor to Elon Musk about a month ago, according to a *Wall Street Journal* report. This move occurred while the electric car manufacturer faced a confluence of challenges, including protests, declining sales, and shrinking profits. Simultaneously, Musk was engaged in activities in Washington, D.C., lobbying for government spending cuts.

The *WSJ* report suggests that board members convened with Musk to voice concerns about his divided attention. They urged him to dedicate more focus to Tesla and to publicly commit to doing so. According to the report, Musk agreed and subsequently told investors he would significantly increase his time allocation to Tesla starting in May.

However, Tesla Chair Robyn Denholm refuted the *WSJ*’s claims in a statement released overnight, calling the report “absolutely false” and asserting that the company had not approached recruitment firms. She also stated this information was communicated to the media before publication. Musk echoed this sentiment, labeling the report an “EXTREMELY BAD BREACH OF ETHICS.” The *Wall Street Journal*, however, maintains that Tesla never responded to reporters’ questions prior to publication.

The backdrop to this alleged succession planning involves a period of significant challenges for Tesla. Musk’s increased engagement in government affairs and political commentary is believed to have contributed to Tesla’s first annual sales decline in over a decade and damaged the company’s brand image among certain consumer segments. This decline is reflected in the company’s market value, which has plummeted from $1.5 trillion in December to approximately $900 billion.

Despite these headwinds, Musk projected optimism during the recent earnings call, despite the company reporting a substantial 71% profit decline and a 9% revenue drop. “We’re not on the ragged edge of death,” Musk assured investors, “not even close.”

The current status of the alleged succession planning remains unclear, according to the *Journal*. It is also uncertain whether Musk was aware of the board’s efforts to identify a potential successor, despite his nearly 20-year tenure at the helm of Tesla.