The Tesla board has begun searching for a new CEO to replace Elon Musk, amid internal pressure and falling investor confidence. Elon has been largely absent from Tesla, focusing more on politics and spending time in Washington, D.C., especially after Donald Trump's re-election. The company is struggling — first-quarter profit dropped 71%, car sales declined for the first time in over a decade, and the Cybertruck rollout flopped.
Despite Elon promising to dedicate more time to Tesla, board members have already contacted recruiting firms to find his replacement. Some insiders say Elon privately expressed not wanting to be CEO anymore. Meanwhile, Tesla is shifting focus toward AI and robotics, but its core electric vehicle business is weakening.
The board is also adding a new independent director, and co-founder JB Straubel is trying to reassure investors. Tesla plans to launch a self-driving ride-hailing service in Austin by June to compete with Waymo and Zoox.