Tesla's board has begun a search for a successor after CEO Elon Musk's political involvement led to a downturn in the company's performance.

By Gage Skidmore

Electric car maker Tesla has begun searching for a new CEO to succeed CEO Elon Musk, the Wall Street Journal reported. Musk leads the Department of Government Efficiency (DOGE) under President Donald Trump, but Tesla's sales have been hit hard by backlash over his involvement in government affairs and political stance.

Exclusive | Tesla Board Opened Search for a CEO to Succeed Elon Musk - WSJ
https://www.wsj.com/business/autos/tesla-musk-ceo-search-board-0ce61af9

Tesla board opened search for a CEO to succeed Elon Musk, WSJ reports | Reuters
https://www.reuters.com/business/autos-transportation/tesla-board-opened-search-ceo-succeed-elon-musk-wsj-reports-2025-05-01/

Musk expressed his support for Trump during the 2024 presidential election and supported his election campaign by providing large amounts of funding. He then joined the administration in January 2025 to lead DOGE, but was given the status of a 'special government employee' working for the government for a period of 130 days or less.

However, since Musk joined the Trump administration, people have been increasingly opposed to him due to his radical words and actions and reforms of government agencies. Tesla's car sales have already plummeted, and the Cybertruck, an EV pickup that began delivery in 2023, has been hit particularly hard .

Tesla car sales plummet in Germany, Australia, China, etc., Elon Musk's radical behavior may be the cause - GIGAZINE

In December 2024, immediately after Trump's victory in the presidential election, Tesla's stock price hit an all-time high of $479 per share, but at the time of writing, the stock price has fallen sharply to $282 per share . Rebellion against Tesla has not been limited to boycotts, but has also escalated to the point where Molotov cocktails have been thrown into showrooms and dealerships' cars and charging stations have been destroyed.

Frustrated by the company's falling stock price, Tesla's board has begun the search for a successor and has contacted several executive search firms, The Wall Street Journal reported. The eight-member board is also considering adding more independent directors.

According to a person familiar with the discussions, board members met with Musk and told him he needed to 'spend more time on Tesla.' It's unclear whether Musk was aware of the board's search for a successor, but he didn't push back against the advice, and during the earnings call he announced he would significantly reduce his involvement in government affairs starting in May. During the earnings call, Musk also acknowledged that Tesla's involvement with the Trump administration had had a negative impact on the company, saying there had been 'some pushback' and 'some challenges.'

Elon Musk tells Tesla shareholders he's withdrawing from DOGE, boycotts and boycotts cause Tesla's net profit to fall 71% - GIGAZINE

Musk was quite busy during the 2024 election and immediately after Trump's election, attending meetings with world leaders and helping select the Trump administration's cabinet members. However, as Musk grew closer to Trump, who opposes the mandate for EVs and has a negative stance on climate change, some employees began to worry about whether Tesla's mission of supporting sustainable energy infrastructure would be upheld.

Tesla executive Mike Snyder held a meeting in late November 2024 to reassure employees that Musk's political moves would not hinder business. 'I acknowledge that it's obviously been a tumultuous and emotional period,' Snyder said in the meeting, adding, 'We'd be better off with Elon next to Trump than being his enemy.'

However, the reciprocal tariffs imposed by Trump have negatively affected Tesla's business in China, one of the largest auto markets, and have disrupted the supply chain that relies on vendors in Mexico and Canada. Muskurged Trump to withdraw the tariffs, but his request was not accepted, and as a result, being by Trump's side has not helped at all.

'I continue to advocate for lower tariffs, not higher, but there's only so much I can do,' Musk said on the earnings call, blaming President Trump for the decision to raise tariffs.