Will Elon Musk be 'replaced' at Tesla?

Tesla’s board has contacted recruiting firms to begin a formal CEO selection process, according to people familiar with the matter, as the electric car company’s sales and profits have been falling rapidly and Elon Musk has been spending more time at the White House.

At a meeting, the board asked Musk to spend more time on Tesla. The South African-born billionaire did not object to this view and stated that he was ready to focus on the company again. However, investors did not seem to have full confidence in Musk and believed that a backup option was still needed.

"Elon Musk has been invited to work at the White House and can stay as long as he wants. I guess he wants to get back to his cars soon," US President Donald Trump thanked the Tesla CEO during a cabinet meeting on April 30.

If the world’s richest man steps down, it would be a major departure after nearly 20 years at the helm of the electric car company. Although Musk stepped down as chairman of the board in 2018, he still makes many decisions that directly affect Tesla.

However, Robyn Denholm, a member of Tesla's board of directors, denied that the company was looking for a replacement for Elon Musk.

"Tesla's CEO is Elon Musk, and the board has great confidence in his ability to continue to execute on the exciting growth plan ahead," Tesla's official X account posted Ms. Denholm's post.

Elon Musk wants to withdraw?

Tesla's eight-member board is looking to add an independent director, according to the Wall Street Journal . Some members, like JB Straubel, have met with investors to reassure them that Tesla is still run by the best people in the industry.

Musk’s political preoccupation coincided with a difficult period for Tesla. In 2024, electric vehicle sales fell for the first time in more than a decade, while the company repeatedly cut prices, severely affecting profits. The Cybertruck, a once-popular model, was ridiculed for its unusual design and became the butt of jokes on television shows.

Elon Musk's busy work at the White House has left him with no time for Tesla. Photo: Bloomberg .

In addition, Elon Musk's close relationship with President Donald Trump has also negatively affected the electric car brand. Tariff policies from the new administration have complicated Tesla's operations in China, while disrupting supply chains in Mexico and Canada.

“I still support lower taxes instead of higher taxes, but the decision is up to the president,” Musk said.

Tesla shares initially surged on market expectations after Mr. Trump’s 2024 election victory. However, the company’s value has fallen from a record $1.5 trillion in December 2024 to $900 billion .

In early 2024, the Tesla CEO confided to people close to him that he was tired of working nonstop at the electric car company. His frustration grew after a Delaware court rejected his multibillion-dollar pay package. The billionaire admitted that he no longer wanted to be CEO, but also worried that he had not found a replacement.

Tesla denies rumors

The electric car company has denied reports that its board is looking for a successor to Elon Musk as CEO. In a statement released on May 2, Tesla said the report was “completely false.”

Musk also issued an official response on the X platform, calling the rumors about him “discredited journalism.” He said he would spend more time on Tesla and pledged to “drastically reduce” his role in government .

Tesla denies rumors of finding a replacement for CEO Elon Musk. Photo: Bloomberg .

Musk was assigned to run the Department of Government Efficiency and as a “special government employee,” he was allowed to work at the White House 130 days a year without having to disclose his income like a full-time employee.

Ms. Robyn Denholm, Chairwoman of Tesla's Board of Directors, emphasized that Elon Musk is a great CEO and investors "have complete confidence in him".

Still, some Tesla customers say they are no longer loyal to the brand because of Musk’s controversial political views and actions while in charge of the Department of Government Efficiency. Many have even pledged to boycott the company and stage protests to protest the new policy.

Next action

Despite owning about 13% of the shares, Musk complained that he had not received a salary for seven years. The board of directors formed a special committee to review his compensation.

Tesla is one of five companies run by Musk. Some employees said that after months of not hearing from the billionaire, they saw him appear in a March meeting, which was livestreamed on the X platform. In it, the Tesla CEO reassured employees and urged them not to sell their shares.

Elon Musk may spend more time on Tesla in the coming time. Photo: Bloomberg .

Musk had previously spent more than $250 million on Trump’s re-election campaign, making frequent appearances at rallies and meetings at his Mar-a-Lago estate. After election night, he flew to Austin for a meeting with the Tesla board, then returned to Florida for high-level meetings.

Tesla is currently in a period of transformation. After the Model 3 and Model Y fueled growth, the company has gradually shifted its focus to AI and robotics. Products such as Cybercab, a steering-wheelless two-seater, and Optimus, a humanoid robot, have high hopes. Musk believes that robotics could propel Tesla to a $30 trillion valuation.

However, electric vehicle production and sales are facing difficulties. In the first year of launching the Cybertruck, Tesla sold only 39,000 units in the US, much lower than the target of 250,000 units/year.

Source: https://znews.vn/elon-musk-bi-thay-the-la-tin-don-post1550546.html