Tesla Board Begins Process To Remove Elon Musk As CEO

The Tesla board has initiated the process of replacing Elon Musk as chief executive after a month of internal pressure and public backlash over his continued absence from the company, Jai Hamid reported for The Cryptopolitan, a newsletter specializing in crypto news.

Directors told Musk he needed to spend more time at Tesla—and make that commitment publicly. Musk did not object. I Photo: Elon Musk X

The move comes amid falling sales, collapsing profits, and growing investor frustration with Musk’s apparent preoccupation with the White House. According to The Wall Street Journal, board members have contacted several top executive search firms to begin the official search for a new CEO.

Behind-the-scenes meetings were held, and during one such meeting, directors told Musk he needed to spend more time at Tesla—and make that commitment publicly. Musk did not object.

The company had just reported a 71% drop in first-quarter profit. On the earnings call, Musk told shareholders, “Starting next month, I’ll be allocating far more of my time to Tesla.”

His prolonged absence triggered a leadership crisis within the company. It is unclear whether Musk was aware of the CEO search or if his pledge to return influenced the board’s decision.

However, some directors had already engaged a search firm. If a new CEO is appointed, it would mark the end of Musk’s two-decade reign at the helm of the electric carmaker.

He stepped down as chairman in 2018 but retained control of the company's operations.