According to a Wall Street Journal report, Tesla's board initiated a search for a new CEO approximately a month ago, citing concerns regarding Elon Musk's dedication to his government role and the subsequent decline in Tesla's profits. The report indicates that board members reached out to several executive search firms to identify a successor for Musk.

The board's decision was reportedly influenced by Musk's significant involvement with the Trump administration. Musk's recent announcement that he would reduce his involvement with the administration and dedicate more time to his companies follows widespread criticism from investors regarding his work at the Department of Government Efficiency (DOGE), where he led efforts to cut federal jobs, while sales of Tesla's aging EV lineup have been on the decline. His embrace of far-right politics in Europe has also led to protests and vandalism at Tesla showrooms and charging stations across the U.S. and Europe.

The board members reportedly met with Musk and requested that he publicly acknowledge his intention to dedicate more time to Tesla. However, it remains unclear whether Musk, who is also a member of the board, was aware of the succession planning or if his pledge to spend more time at Tesla has impacted these efforts. As of the report, neither Tesla nor Musk had responded to requests for comment.