The Tesla board is reportedly exploring options to replace Elon Musk as CEO, according to the Wall Street Journal. Executive search firms have been approached to find a suitable successor, as concerns grow over Musk’s focus on Tesla amid his responsibilities in Washington. Musk currently heads the Department of Government Efficiency (DOGE) under President Donald Trump, a role intended to streamline federal spending.

The board's move comes amid falling Tesla profits and deteriorating sales. In Q1 2025, Tesla saw a 71% profit plunge, prompting board members to urge Musk to re-prioritize the company. Musk responded by promising to devote more time to Tesla starting next month.

It is unclear how far the CEO search has progressed or if Musk Knows the plan. President Trump recently acknowledged Musk's service, suggesting he is ready to return to Tesla full-time.

Musk’s close ties with Trump have strained Tesla’s brand image, particularly in progressive markets like California and Germany. His $250 million campaign donation and continued cooperation with the administration have created tension within Tesla, especially after Trump’s renewed support for fossil fuels. Some Tesla owners have distanced themselves from Musk's politics by posting stickers on their vehicles.

Meanwhile, Tesla’s Cybertruck received backlash for its design, and automotive revenue declined 20% in major markets like China, Germany, and California. Despite these challenges, Musk remains optimistic.“We’re not on the ragged edge of death, not even close,” he said, expressing hope that the company will rebound soon.

Read More: Palestinian Columbia Student Released After Judge Cites Free Speech Violation