Translated with AI
The board of directors of the American corporation Tesla has initiated the process of searching for a new CEO amid falling market capitalization of the company and growing dissatisfaction of investors with the activities of the current head Elon Musk. This was reported by the newspaper The Wall Street Journal , citing informed sources.
According to the publication, the issue of a possible change in management was discussed by the board of directors about a month ago. The basis for such steps was not only the company's financial results, but also shareholders' concerns that Musk is increasingly devoting more time to politics to the detriment of Tesla's operational management.
After Donald Trump won the US presidential election in November 2024, Tesla shares reached a record capitalization of $1.5 trillion amid expectations of an improving business climate for the company. However, by early 2025, the company's value had fallen to $900 billion. Internal surveys among employees showed that some of them consider Musk's political activity as a factor hindering business development.
The situation was complicated after Musk publicly expressed support for far-right parties in several European countries. In response, some Tesla owners in Germany and the UK began a protest campaign, placing stickers on their cars criticizing the company's founder.
An additional blow to business was President Trump's new tariffs on Chinese goods, which disrupted Tesla's plans to bring its Cybercab and Semi electric trucks to market.
As the WSJ notes, back in 2024, after a Delaware court voided Musk's $55 billion compensation package, he admitted in private conversations that he no longer aspired to the CEO position, but was concerned about the lack of an adequate replacement. The board of directors has already formed a special committee to review the terms of compensation for senior management.
Amid worsening financial performance, Tesla reported on April 22 that profits fell 71% and revenues fell 9% in the first quarter of 2025. Vehicle sales fell 13% to 336,681 units, the worst result since the third quarter of 2022. Analysts had forecast sales in the range of 360,000 to 390,000 vehicles.
That same day, Elon Musk announced that he would be cutting back on his government reform efforts (the Department of Government Efficiency, DOGE) starting in May, focusing on Tesla "at least one to two days a week."
Musk currently owns about 13% of Tesla shares and continues to be involved in the company's strategic management.
