MW Tesla denies report it's initiated CEO search for Elon Musk's successor

By Mike Murphy

Tesla gave an unusual public denial to report its board has taken steps toward finding Chief Executive Elon Musk's successor earlier this month, as the EV maker's stock sank while Musk prioritized his DOGE efforts, according to a new report.

The Wall Street Journal reported Wednesday night that the board contacted several executive search companies to begin the formal process of looking for a new CEO, citing sources familiar with those discussions.

The automaker, which rarely comments in public on stories, issued a public denial attributed to its chairman, Robyn Denholm.

Tesla shares $(TSLA)$ have plunged 30% year to date amid backlash to Musk's role leading the Trump administration's so-called Department of Government Efficiency, as he recommended deep federal personnel cuts. Analysts said Musk was harming Tesla's brand, as Tesla showrooms and service centers became the sites of protests, and some shareholders expressed concerns that Musk was not paying enough attention to the car company.

Even Wedbush analyst Dan Ives, a noted Tesla bull, slashed his price target for Tesla stock by 43%, saying in early April: "This situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol."

The report said it was unclear if those succession-planning efforts are still underway. The Journal also said it was unclear if Musk knew about those efforts or whether his recent pivot back toward Tesla has put off the search for his successor.

Last week during Tesla's quarterly earnings call, Musk said that starting in May, "my time allocation to DOGE will drop significantly... I'll be allocating far more of my time to Tesla."

On Wednesday, President Donald Trump thanked Musk for his efforts, and said he "at some point he wants to get back home to his cars."

Musk has served as Tesla's CEO since 2008. He oversees four other companies, including SpaceX.

Musk's value to the company's stock price is still apparent. According to FactSet, Tesla has an enterprise value to earnings before interest, taxes, depreciation, and amortization ratio of 76. Mercedes-Benz (XE:MBG), which made more money than Tesla last year, has an EV-to-EBITDA of 5.

- Steve Goldstein contributed to this report

-Mike Murphy

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May 01, 2025 02:35 ET (06:35 GMT)

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