Tesla Board Reportedly Explored CEO Succession Plan
Recent reports suggest that Tesla's board explored potential CEO succession plans. This comes amid concerns over Elon Musk's divided attention between Tesla and his involvement in Washington.
The Wall Street Journal (WSJ) reported that the board approached executive search firms approximately a month ago. This followed protests, declining sales, and shrinking profits at Tesla, coinciding with Musk's efforts to influence government spending in Washington.
Board Concerns and Musk's Response
Board members reportedly expressed concerns to Musk about his divided focus. They urged him to dedicate more time to Tesla and make a public commitment to do so. According to the WSJ, Musk agreed and subsequently told investors he would allocate more time to the company.
Denials and Disputes
Tesla Chair Robyn Denholm denied the report, stating that the company did not approach recruitment firms. She called the report "absolutely false." Musk echoed this sentiment, calling it an "extremely bad breach of ethics." The WSJ maintains that Tesla did not respond to their inquiries.
Impact on Tesla's Performance
Musk's involvement in Washington coincided with Tesla's first annual sales decline in over a decade. His political stances also impacted the company's brand image among some consumers. Tesla's market value has dropped significantly.
Tesla's Future
Despite these challenges, Musk expressed optimism about Tesla's future during a recent earnings call, where the company reported declines in both profit and revenue. He assured investors that the company is not in dire straits.
The current status of any succession planning remains unclear, and it is unknown whether Musk was aware of the board's alleged exploration of potential successors.
