According to a new, browsing rising WSJ ReportTesla’s board quietly started searching for a possible successor to Elon Musk a month ago, approaching executive search firms when carmakers faced protests, sales declined, and profit was shrinking, while Musk had enrolled in Washington to reduce government spending.
Members of the board allegedly met the Musk to express their concerns about his divided attention, and told him that he needed to spend more time on Tesla and pledge to do so in public. According to the journal report, Musk did not withdraw and then told investors that he would “allocate more time for Tesla, starting in May”.
As a result of Musk’s official work, Tesla’s first annual sales declined in a decade. It also targeted the company’s brand image because of its political alignment among some consumers. The impact has been faster and faster: Tesla’s market value has dropped from $ 1.5 trillion in December to about $ 900 billion.
Despite these challenges, Musk felt optimistic about the future of Tesla during last week’s revenue call, where the company reported a reduction of 71 percent profit and a 9 percent reduction. “We’re not on the edge of death,” Musk assured investors, “Not even closer.”
According to the journal, the current status of successive planning is not yet clear. It added that it is unclear whether Musk, who has been running Tesla for almost 20 years, was aware of the effort.