WSJ "Tesla Board Begins Process to Select Musk's Successor as CEO"

The Tesla board is pushing for the ousting of Elon Musk as CEO.

The Wall Street Journal (WSJ) reported on the 30th (local time) that "about a month ago, the Tesla board began seriously considering selecting a successor to Elon Musk as CEO," and "the board has already contacted several executive search firms for the official procedure of selecting a successor CEO." WSJ reported that "(recently) the board met with Musk and requested that he devote more time to Tesla and make that fact public," and "Musk did not refute the board's request."

It is known that the Tesla board is conducting a search for Musk's successor as CEO, centered around a major search firm. WSJ stated, "The current specific progress of the (CEO) succession is unclear," and "it is also uncertain whether Musk, a member of the board, was aware of such (succession) work."

The reason the Tesla board is considering a CEO change is due to recent poor performance. Tesla's first-quarter net profit was $490 million, a sharp decline of about 71% from a year ago ($1.39 billion). This coincides with the time when Musk began leading the Department of Government Efficiency (DOGE) after the inauguration of the Trump administration's second term. WSJ said, "The period when Musk was engrossed in government activities was a difficult time for Tesla."

The board is also considering appointing additional independent directors. WSJ reported, "Even after stepping down as chairman of the Tesla board in 2018, Musk has been deeply involved in all businesses," and "if Musk steps down, it will be a significant turning point in Tesla's history."