[BENGALURU] Tesla board members reached out about a month ago to several executive search firms to find a successor to CEO Elon Musk, The Wall Street Journal (WSJ) reported on Wednesday (Apr 30), citing sources familiar with the discussions.
The current status of the board’s push, which, according to the report, was sparked by Musk’s heavy involvement with the Trump administration, could not be determined, WSJ said.
Musk last week said he would cut back significantly on the time he devotes to the Trump administration and spend more time running Tesla.
Musk’s work at his Department of Government Efficiency (Doge), where he has led efforts to cut federal jobs, has been one of the most controversial aspects of the Trump presidency, and his time away from Tesla has been an additional concern for investors as sales of its ageing electric vehicle (EV) lineup have been on the decline.
His embrace of far-right politics in Europe has also led to protests against Musk and the company as well as vandalism at its showrooms and charging stations across the US and Europe.
The board members met Musk and asked him to acknowledge publicly that he would spend more time at Tesla, the report said.
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But it was unclear if Musk – also a member of the board – was aware of succession planning, or if his pledge to spend more time at Tesla has affected the efforts, the report added.
Tesla and Musk did not immediately respond to Reuters’ requests for comment.
Tesla is at a crucial juncture.
Amid rising competition globally, Musk has pivoted from his promise of making a new affordable EV platform to rolling out driverless taxis and humanoid robots, highlighting Tesla’s future as an AI and robotics company instead of an automaker.
Much of the company’s valuation is based on that vision, and some investors believe Trump will help further it. Last week, federal regulators eased rules for testing autonomous vehicles, boosting Tesla’s stock.
Some Tesla directors, including co-founder JB Straubel, have been meeting with major investors to reassure them the company is in good hands, the WSJ said.
Activist investors have long accused Tesla’s board of lacking independence and failing to rein in Musk.
Board chair Robyn Denholm, hand-picked by Musk whose controversial pay package she defended, has also drawn criticism for her own pay package along with questions about whether that compromised her oversight of Tesla and Musk. Denholm has dismissed the allegations and a spokesperson has said her pay was fair.
The eight-person Tesla board, which also includes Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch, has been looking to add an independent director, the report said. REUTERS
