The Tesla board of directors launched a CEO search in March, consulting executive recruitment firms to possibly replace Elon Musk, according to the Wall Street Journal. The move followed a steep stock decline and criticism over Musk’s time spent on government duties rather than company operations.
🔹 Highlights:
- Tesla shares dropped 45% in 2024 before partial recovery.
- Q1 profits plunged 71%, with sales sliding.
- Musk focused heavily on White House initiatives, spending less time at Tesla.
- Board members asked Musk to re-engage; he didn’t resist.
- It’s unclear whether Musk was aware of the CEO search.
🔹 Political Angle:
- President Trump publicly thanked Musk, saying:
“You’ve really been a tremendous help. You’re invited to stay as long as you want.” - Musk replied jokingly: “They say I wear a lot of hats.”
🔹 Public Image at Risk:
- Protests and backlash have grown; Tesla’s environmental brand has been damaged.
- Musk’s activity on X and controversial posts have driven away many supporters.
🔹 Trade War Impacts:Tesla is vulnerable amid U.S.–China tensions, but Trump’s tariff relief offers temporary reprieve for U.S.-based production.