In recent months, Musk has expressed to a confidant that he no longer wants to be CEO of Tesla, that person told the Journal.
Tesla’s board in March contacted multiple executive placement firms to begin a search process for a new CEO to replace Elon Musk at the helm of the embattled electric car company, the Wall Street Journal reported Wednesday night, citing multiple anonymous sources.
It’s not clear what the time table would have been for Musk’s ouster or whether those search efforts remain in place, the Journal reported.
The stunning revelation suggests that Tesla’s moribund stock price which tumbled as much as 45% this year before recovering somewhat amid a broader stock market rebound – wore on the board’s patience as Musk spent a significant amount of his time working for the White House’s Department of Government Efficiency initiatives.
Sales and profit plunged in the first quarter, Tesla reported last week. The company announced earnings nosedived 71% – a shocking report that was perhaps overshadowed by Musk’s announcement the same day that he would be stepping back from his government role and returning to Tesla.
The Journal said it was unclear whether Musk’s announced return altered the status of the succession planning. Musk and Tesla did not respond to a request for comment.
It is also unclear if Musk, who is also a Tesla board member, was aware of the search effort, the Journal said.
Around the same time the board began looking for a potential new CEO, directors told Musk that he needed to spend more time at the company, according to the report. Musk didn’t push back, the Journal said.
At a Cabinet meeting Wednesday President Donald Trump thanked Musk for his service to government – a role that is officially ending soon, although Musk is expected to continue some of his work with the White House after he steps back.
“You have been treated unfairly, but the vast majority of people in this country really respect and appreciate you, and this whole room can say that very strongly. You’ve really been a tremendous help,” Trump told Musk Wednesday. “You’re invited to stay as long as you want. At some point, I guess, he wants to get back home to his cars.
