Tesla may soon have new leadership, as reports suggest the board is quietly considering replacing Elon Musk as CEO.
Tesla, one of the world’s most recognized electric vehicle companies, could soon face a major leadership shakeup.
Reports have emerged suggesting that some Tesla board members are exploring the possibility of replacing Elon Musk as CEO.
This has sparked speculation across both the financial and tech industries.
Elon Musk’s ties to Tesla face growing scrutiny
Though Elon Musk did not originally found Tesla, he has long been the company’s most visible and influential figure.
His bold vision and ambitious leadership have shaped Tesla’s identity for over a decade.
However, Musk’s growing commitments outside of Tesla, particularly his focus on SpaceX, have raised concerns.
Additionally, his involvement with the Department of Government Efficiency (DOGE) has led many to question whether he can continue to lead the EV giant effectively.
Tesla’s recent stock performance has only added fuel to the fire.
Since peaking at $479.86 in December 2024, Tesla’s share price has dropped by 38% amid market volatility, investor uncertainty, and external pressures.
The situation worsened with President Trump’s aggressive tariff strategy, which disrupted Tesla’s international operations.
Musk announced his plan to step away from DOGE and recommit to Tesla full-time.
However, some board members remain unconvinced that his attention will stay focused on the company.
Top candidates to replace Elon Musk as Tesla board reportedly considers CEO change
Should Tesla move forward with a leadership change, several internal candidates are rumored to be in contention.
These include Tom Zhu, Senior Vice President of Automotive; Vaibhav Taneja, the company’s CFO; and Omead Afshar, widely known as Musk’s closest advisor within Tesla.
Afshar, in particular, holds considerable influence and is often seen as the gatekeeper between Musk and the rest of the company.
However, former employees have raised concerns about his management approach, including reports of internal pushback being met with forced resignations.
Despite these issues, his deep ties to Musk and experience within Tesla may make him a front-runner.
Former executive JB Straubel among external favorites
Outside the company, one of the most prominent names being floated is JB Straubel, a Tesla co-founder and its former Chief Technology Officer.
Straubel is respected for his technical expertise and deep understanding of Tesla’s inner workings.
Analysts like Gene Munster praised Straubel’s credibility, highlighting his mutual respect with Musk as a key advantage over other contenders.
According to Munster, Straubel could help smooth a leadership transition, especially given his historical role in shaping Tesla’s early innovations and infrastructure.
Musk’s exit could shake investor confidence
Despite the challenges Musk has faced, his influence over Tesla remains immense.
Industry experts warn that removing him, even voluntarily, could severely damage investor trust.
Venture capitalist Bradley Tusk emphasized that Tesla’s high market valuation is closely tied to Musk’s persona.
Without him at the helm, the company may be viewed as a conventional automaker, risking a major drop in market cap.
Munster estimates that Tesla could lose up to 25% of its value if Musk exits, reflecting the gravity of such a move.
Replacing Musk may not be simple. He owns roughly 13% of Tesla and maintains strong ties with key board members, including his brother, Kimbal Musk.
These relationships give him considerable influence over internal decisions, potentially complicating any effort to force a leadership transition.
Any attempt to replace Musk would face resistance from Tesla’s internal team and passionate investors unless he steps down voluntarily.
As of now, both Elon Musk and Tesla’s board chair deny that a CEO search is underway.
Still, the speculation reveals growing unease about Tesla’s future direction.
Whether Musk retains control or a new leader emerges, the next few months could be pivotal for the company’s long-term trajectory.