Tesla Board Explores CEO Succession Plan
Tesla's board reportedly initiated a search for a potential successor to CEO Elon Musk approximately a month ago, according to a Wall Street Journal report. This move comes as the electric vehicle manufacturer grapples with declining sales, shrinking profits, and protests, while Musk has been increasingly involved in political matters.
Concerns Over Musk's Divided Attention
Board members reportedly expressed concerns to Musk about his divided attention, urging him to dedicate more time to Tesla. Musk reportedly agreed and subsequently informed investors he would allocate more time to the company.
Musk's political engagements coincided with Tesla's first annual sales decline in over a decade and a decline in brand image among some consumers. The company's market value has dropped significantly, from $1.5 trillion in December to around $900 billion.
Tesla's Financial Performance and Musk's Outlook
Despite these challenges, Musk maintained an optimistic outlook during Tesla's recent earnings call, where the company reported a 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 succession planning remains unclear, and it is unknown whether Musk was aware of the board's efforts, according to the Wall Street Journal.
