After years of being synonymous with Tesla, it looks like Elon Musk’s time as CEO may finally be winding down. According to a report from The Wall Street Journal, Tesla’s board has initiated the process to find a new chief executive—marking a potential end to Musk’s two-decade reign over the electric vehicle pioneer.
This decision isn’t coming out of nowhere. Over the past few months, pressure has mounted from inside the company and from investors increasingly frustrated with Musk’s apparent disengagement from day-to-day operations. Meanwhile, Tesla’s financials have taken a serious hit: Q1 profit plunged 71%, car sales dropped for the first time in over a decade, and the much-hyped Cybertruck rollout turned into a PR headache.
Behind closed doors, Tesla’s board has already contacted top recruiting firms to begin the CEO search. At one meeting, directors reportedly told Musk he needed to be more present—and that he should say so publicly. On the next earnings call, Musk promised to dedicate more of his time to Tesla starting the following month. But just days later, he was back in Washington, receiving praise from President Trump $TRUMP during a cabinet meeting.
That contradiction hasn’t gone unnoticed by shareholders or employees. The uncertainty around Musk’s involvement has triggered a broader leadership crisis. Some staff say they barely saw him for months. Even though over 20 executives still report directly to him, his recent leadership has felt remote—both literally and figuratively.
Let’s be clear: if a new CEO is appointed, it would mark a historic turning point not only for Tesla but for the broader EV and tech ecosystem. Musk has long defined Tesla not just as a car company, but as the future of automation, robotics, and AI. Replacing him won’t just be a personnel decision—it’ll be a philosophical pivot.
Adding to the complexity is Musk’s frustration with his own role. Privately, he’s expressed fatigue, noting he hasn’t been paid in years despite owning 13% of Tesla. He’s said he no longer wants to be CEO but fears no one else can fully realize Tesla’s ambitious vision. Meanwhile, the board has formed a new compensation committee to address his concerns.
Tesla’s shifting priorities are also adding fuel to the fire. While the EV business struggles, Tesla is increasingly focused on artificial intelligence and robotics. The Optimus humanoid robot is now central to Musk’s vision of Tesla as a $30 trillion company. The Cybercab—an autonomous vehicle without pedals or a steering wheel—is supposedly launching soon. A ride-hailing app using driverless Model Ys is planned for Austin in June, putting Tesla in direct competition with Waymo and Zoox.$ETH
Still, it’s clear that without strong leadership at the top, Tesla’s future is anything but certain. Musk’s growing political entanglements and physical absence have left a vacuum. And while co-founder JB Straubel has been meeting investors to shore up confidence, even he can’t fill Musk’s shoes if the company’s core business continues to deteriorate.
As someone watching the intersection of tech, business, and crypto, this moment feels pivotal. Whether you’re invested in Tesla, its ecosystem, or simply in the future of innovation, what happens next at Tesla will ripple far beyond the EV space.
