Tesla’s board of directors has reportedly taken early steps toward identifying a potential successor to CEO Elon Musk, according to a Wall Street Journal report citing unnamed sources familiar with the discussions.
The board has reached out to multiple executive search firms as part of a formal process to consider new leadership options, the report said. This marks a shift in approach for Tesla’s board, which has long been seen as strongly supportive of Musk, including its endorsement of a $55 billion compensation package and its silence on recent controversies surrounding the CEO’s conduct and external commitments.
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According to the report, Tesla’s board met with Musk last month and emphasized the need for him to increase his focus on the automaker. While Musk reportedly committed to dedicating more time to Tesla, the current status of the CEO search remains unclear. It is also uncertain whether Musk was fully aware of the board’s outreach to search firms.
The company is also reportedly looking to add an independent director to its eight-member board. Tesla co-founder JB Straubel has held meetings with major investors in recent weeks to offer reassurance regarding the company’s direction, the report said.
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Internal concerns about Musk’s leadership and public profile have surfaced. A Tesla executive reportedly told colleagues that Musk’s political activity had made it harder to attract and retain talent. The board has acknowledged in meetings with investors that Musk has appeared less informed in internal briefings than in previous years.
Additionally, WSJ reported that Musk had expressed reluctance to continue as CEO in private messages, stating that he was unsure anyone else could effectively convey Tesla’s long-term vision focused on robotics and automation.
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During Tesla’s latest earnings call, Musk said he would begin to shift more of his time back to Tesla starting in May, after completing initial work related to a federal initiative. However, he also noted that he would still allocate one to two days per week to government-related responsibilities.