According to a Wednesday night report by the Wall Street Journal citing multiple anonymous sources, Tesla's board reached out to several executive search firms in March to start looking for a new CEO to potentially replace Elon Musk as head of the struggling electric vehicle company.
It’s not clear what the time table would have been for Musk’s ouster or whether those search efforts remain in place, the Journal reported, reports CNN.
The surprising disclosure indicates that Tesla’s struggling stock price (TSLA) — which had dropped by as much as 45% this year before partially bouncing back with the broader market — tested the board’s patience, especially as Musk devoted much of his attention to working on government efficiency projects for the White House.
Tesla revealed last week that its sales and profits dropped sharply in the first quarter, with earnings plummeting by 71%—a staggering decline that may have been overshadowed by Elon Musk's announcement the same day that he would step down from his government role and refocus on leading Tesla.
The Journal said it was unclear whether Musk’s announced return altered the status of the succession planning. Musk and Tesla did not respond to a request for comment.
It is also unclear if Musk, who is also a Tesla board member, was aware of the search effort, the Journal said.
Around the same time the board began looking for a potential new CEO, directors told Musk that he needed to spend more time at the company, according to the report. Musk didn’t push back, the Journal said.
At a Cabinet meeting Wednesday President Donald Trump thanked Musk for his service to government – a role that is officially ending soon, although Musk is expected to continue some of his work with the White House after he steps back.
Bd-pratidin English/ Afia
