Tesla’s Board of Directors has begun searching for a new CEO to replace Elon Musk

Tesla's board of directors, which is headed by Elon Musk, has approached a number of executive search companies to look for the best candidate who could take Musk's position as the CEO of the firm, reports say. The Wall Street Journal reported, quoting individuals who were aware of the negotiations, that the decision has been made following Musk's growing activity in the White House and the fall in Tesla's stock prices.

Musk's White House Role

Musk, who campaigned vigorously for Donald Trump during his presidential campaign, has been given a special role at the White House, leading the Department of Government Efficiency (DOGE). This assignment has consumed much of Musk's time, and there have been concerns that he will not be able to run Tesla effectively.

Tesla's financial woes

Tesla's financial results have been disappointing, with the company's first-quarter profit falling 71% this year. The sales of the company have also been on the decline, with Tesla recording its first annual sales decline in more than a decade. The Cybertruck, which is one of Tesla's most prominent products, has been ridiculed for its design, further hurting the company's image.

Board's concerns

The board of Tesla had apparently asked Musk to get back to work at the company during its time of financial troubles. Musk had promised investors that he would be dedicating more time to Tesla, saying he would be devoting more time to the company beginning next month.

Trump's comments

US President Donald Trump had also hinted at the possibility that Musk could wish to return to working more on Tesla. Trump, during a meeting, expressed gratitude to Musk for his service at the White House and indicated that he could consider returning to his company. 

Implications

The possible departure of Musk as Tesla's CEO may have profound implications for the future of the company. Musk's CEO leadership has been central to defining Tesla's vision and direction. The new CEO would have to deal with the company's problems and figure out how to revive its financial performance.

Hunt for a new Tesla CEO is a big story

The hunt for a new Tesla CEO is a big story, as Musk was at the center of the company's success. Even though the process is still ongoing, it is yet to be seen how far the search has gone and if Musk is privy to the plans of the board. One thing is for sure, though: investors and industry watchers alike will be watching closely as Tesla shapes its future direction.