Tesla reportedly looking for a CEO to succeed Elon Musk: WSJ

Tesla has reportedly begun searching for a CEO to succeed Elon Musk, according to an exclusive report by The Wall Street Journal (WSJ).

The automotive company has been facing declining sales and profits, giving rise to concerns from investors about Musk's increasing time in Washington DC and involvement in the Department of Government Efficiency (DOGE) for President Donald Trump.

Tesla's first quarter net income plunged 71 per cent to US$409 million (S$534 million), from US$1.39 billion (S$1.81 billion) a year ago, as reported by CNBC.

According to WSJ, the current status of the succession plan could not be determined. It is also unclear if Musk is aware of the effort.

Directing more time to Tesla

On a conference call with Tesla investors and analysts last week, Musk acknowledged: "There’s been some blowback for the time that I’ve been spending in government with the Department of Government Efficiency, or DOGE.”

He said that he would be directing more of his time to Tesla and stepping back from his role in DOGE.

“My time allocation to DOGE will drop significantly,” he said, as quoted by CNN.

“Starting next month, I’ll be allocating far more of my time to Tesla.”

It is unclear if Musk's indication that he would spend more time at Tesla would affect the succession planning, the WSJ wrote.

Musk stepped down as Tesla chairman in 2018, but continued to be deeply involved in the electric-vehicle company.

The journal claims that Musk has told his confidant that he no longer wants to be the CEO of Tesla, but is worried that he could not find anyone to replace him, and realises his vision of Tesla.

DOGE

Since President Donald Trump assumed office on Jan. 20, 2025, Musk started becoming involved in allegedly cutting government waste through DOGE.

DOGE, a white house initiative, was set up to cut U.S. government spending. It focuses on cancelling contracts, grants, and leases from the previous administration, cutting "fraud and waste", and reducing the government workforce.

Trump told BBC that the initiative has saved the government about almost USS200 billion (S$261 billion) so far.

However, other studies have indicated that DOGE's efforts could end up losing a comparable amount of money for the government, through lost productivity, compensation costs and defending lawsuits from fired workers.

WSJ claims that Musk's close ties with Trump have stained the Tesla brand for potential buyers.

His embrace of right-wing politics and figures has also led to backlash from customers.

Musk told investors that the backlash against Tesla derives from his work with DOGE.

“The real reason for the protests, the actual reason, is that those receiving the waste and fraud wish to continue receiving it,” he said, as quoted by WSJ. “That is the real thing that’s going on here, obviously.”

Musk also defended Tesla's performance and remains optimistic about its future.

“We’re not on the ragged edge of death,” he said, “not even close.”

A denial

Update: Elon Musk has denied the WSJ report

After the WSJ report was published, Musk denied it, tweeting that it was an "extremely bad breach of ethics", as The Guardian reported.

Tesla also denied the report, saying it is "absolutely false" and that it remains confident in Musk to continue executing the "exciting growth plan" ahead.

Top image via Jim Watson/AFP