Tesla has officially launched a CEO search to potentially replace Elon Musk after stock losses, political controversy, and concerns from shareholders over his shifting priorities.
Tesla board opens leadership search after Musk’s focus shifts to politics
The Tesla is seeking a new CEO after Elon Musk’s controversial political involvement and dwindling focus on the electric vehicle company raised red flags among board members.
The Wall Street Journal revealed that Tesla contacted executive search firms to identify potential successors. Musk’s public alignment with Donald Trump and his role in the Department of Government Efficiency (DOGE) alarmed investors.
The Tesla board reportedly asked Musk to publicly confirm his return to Tesla or risk losing his leadership role. Musk complied and promised renewed commitment.
Musk agrees to refocus on Tesla as shareholders demand stability
During Tesla’s first-quarter earnings call, investors pressed Musk to reduce political distractions and dedicate more time to Tesla’s operations and engineering.
Musk admitted shareholder concerns were valid and confirmed he would scale back his DOGE involvement starting in May. He pledged to devote significantly more time to Tesla moving forward.
However, Musk plans to continue part-time involvement with DOGE, working one to two days per week, despite ongoing shareholder unrest over his priorities.
Tesla stock plunges nearly 40% as profits fall sharply in first quarter
Tesla’s profits dropped 71% in the first quarter of 2025, from $1.4 billion last year to just $409 million, far below Wall Street expectations.
The company’s stock price has lost nearly 40% of its value since January. Though slightly rebounding after earnings, investor confidence in Tesla has clearly weakened.
“During Tesla’s first-quarter earnings call, investors were given the chance to ask the CEO anything. It quickly became clear they were all focused on one issue.
One asked: ‘Can Elon please provide some reassurance that at some point soon he will be done with DOGE and politics? Many Tesla shareholders wish he would reprioritize the majority of his time and effort to engineering.’
‘Starting probably in next month, in May, my time allocation to DOGE will drop significantly,’ Musk said on the call.
Musk’s political entanglements and shifting focus are believed to be contributing to investor skepticism, alongside broader economic pressures in the EV market.
Previously, Top Tesla investor calls for Elon Musk to step down after $800,000,000,000 billion stock drop
In the latest interview with Sky’s Business Live, investor Ross Gerber called for Elon Musk to step down after Tesla’s $800 billion stock drop.
Gerber accused Musk of prioritizing his role in the Department of Government Efficiency (DOGE) under Donald Trump’s administration.
While, he believes Musk has been too distracted by politics and social media.
‘I think Tesla needs a new CEO and I decided today I was going to start saying it, and so this is the first show that I’m saying it on,’ Gerber said in an interview on Sky’s Business Live.
Additionally, he also argued that ElonMusk must either return to Tesla full-time or appoint a new CEO.
He added that Tesla is in crisis due to declining sales and a damaged reputation.
Tesla takedown group takes credit for Tesla’s falling revenue
A grassroots group called Tesla Takedown claimed responsibility for the growing financial pressure on Tesla, citing ongoing dealership protests and public awareness campaigns.
“The earnings report shows our movement is making an impact,” the group said in a statement. “Tesla’s bottom line is starting to feel the heat.”
While investor confidence has waned and profits have slumped, Tesla remains the best-selling electric vehicle brand in the United States and the most valuable automaker globally.