The Elon Musk Tesla era may be facing internal scrutiny. According to a report by The Wall Street Journal, Tesla’s board is actively considering a Tesla leadership change as early as March this year. This comes amid a steep drop in the company’s stock and growing unease among investors over Musk’s deepening role in U.S. politics.
Political Commitments Raise Concerns
The report says board members have grown increasingly concerned about Musk’s work with the Donald Trump administration. He currently heads the Department of Government Efficiency (DOGE), a role that has pulled his focus away from Tesla operations. Discussions about succession are ongoing, though the board has not reached a final decision.
Tesla Stock Underperforms
The Elon Musk Tesla connection has come under more scrutiny as the automaker’s shares continue to slide. As per CNN, Tesla’s stock plunged by up to 45% this year before recovering slightly. The drop, coupled with Musk’s divided focus, has reportedly frustrated the board and investors alike.
Musk Responds to Backlash
Last week, Musk announced plans to reduce his time in Washington and return his attention to his companies. This move came in response to investor anger over his work at DOGE, where he has led controversial cost-cutting efforts in the federal workforce, according to Reuters.
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Aging Lineup and Falling Sales
Compounding the issue, Tesla’s aging vehicle lineup has seen few major updates. Sales continue to fall, and Musk’s political views have sparked protests and vandalism at Tesla stores across the U.S. and Europe.
Board Pushes for Recommitment
The WSJ report claims Tesla’s board met with Musk and urged him to publicly reaffirm his commitment to the company. It remains unclear whether Musk—who also serves on the board—was fully aware of the succession talks.
Earnings Plunge Adds Pressure
Tesla’s first-quarter earnings dropped by a staggering 71%, adding urgency to board concerns. Revenue and profit both fell sharply. The earnings report coincided with Musk’s announcement that he would scale back his political role.
Tesla Leadership Change Not Confirmed Yet
While no formal transition has been announced, internal discussions indicate that Tesla’s leadership is preparing for possible changes. The mix of poor earnings, political distractions, and falling investor confidence has pushed the issue into the spotlight.
