The Tesla board of directors has quietly begun the search for a possible successor to Elon Musk as CEO, amid a sharp drop in sales, battered profit margins, and rising internal tensions.

According to a report from the Wall Street Journal, the board recently reached out to several firms specializing in executive recruitment to initiate a formal succession process, which had not been seriously considered until now.

The pressure to act intensified a month ago when Tesla's stock plummeted and several investors expressed their frustration over the time Musk was spending on political matters in Washington, particularly his closeness to President Donald Trump.

In this context, board members met with Musk and demanded that he dedicate more time to Tesla and communicate it publicly. Musk did not oppose and, days later, stated in a call with investors that “starting next month, I will dedicate much more of my time to Tesla.”