Main to remember
- Tesla’s board of directors is looking for the successor of Elon Musk in the middle of declining sales.
- Research is motivated by the external advice and the reduction in the concentration of musk on daily operations.
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Tesla’s board of directors discreetly launched a search for the successor to the CEO Elon Musk in the midst of sales and profits downwards, reaching out to several management firms about a month ago, the Wall Street Journal reported on Wednesday, citing people familiar with discussions.
The company also sought to add an independent administrator to its board of directors of eight members and met the main investors to consolidate confidence, according to the report.
Research would have been launched in the midst of increasing concerns concerning Musk’s time far from Tesla.
The technology magnate has spent many hours working in Washington as head of the Ministry of Government Effectiveness (DOGE) under President Donald Trump. During this period, the benefit of Tesla’s first quarter dived by 71%, and sales fell on key markets, including China, Germany and California.
According to the report, the board of directors recently met Musk and urged him to re -engage with the operations of the company, a request which he did not resist.
“From next month, I will allocate much more of my time to Tesla,” Musk said in a recent call for results.
It is not clear if Musk was aware of discussions on the next generation planning or if his commitment to refocus on Tesla affected the efforts of the council, the report said.
Tesla’s shares have decreased sharply in recent months, following a cutting -edge assessment of $ 1.5 billion at the end of 2024. The title closed on Wednesday about 3%, according to Yahoo financing data.
The company’s cybertruck has underperformed expectations, and its pivot at AI and robotics, including the upcoming launch of a Robotaxi service, has not yet compensated for the weakening of electric vehicle demand.
Musk, who remains a member of the board of directors and holds around 13% of the company, expressed private frustration to work without salary, because a Delaware judge canceled his compensation package last year. The board of directors has since trained a committee to review the remuneration of CEOs.
Last spring, Musk expressed a confidant that he no longer wanted to be CEO of Tesla, but feared finding an appropriate replacement that could sell Tesla’s vision beyond automotive manufacturing.
“We are not on the shirt edge of death, not even close,” Musk told investors after announcing his intention to reduce his time in Washington.
Tesla said he kept her 11,509 bitcoin in the first quarter of 2025 despite her financial performance below expectations. Tesla’s Bitcoin hiding place experienced a recovery of value, exceeding $ 1 billion as Bitcoin prices increased.
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