According to a new one, WSJ reportThe Tesla Board began in silence to Elon Musk’s potential successor approximately one month ago, approaching executive search companies as the automobile manufacturer faced protests, falling sales and reducing profits while Musk got into Washington to reduce government spending.
According to the reports, the members of the Board met with Musk to express their concern for their divided attention, telling him that he needed to spend more time in Tesla and publicly commit themselves to do so; According to the magazine’s report, Musk did not withdraw and subsequently told investors that “it would assign much more time to Tesla” from May.
Musk’s government work led to the first annual decrease in Tesla sales in more than a decade; He also tarnished the company’s brand image among some consumers due to their political alignment. The impact has been fast and furious: Tesla’s market value fell from $ 1.5 billion to approximately $ 900 billion today.
Despite these challenges, Musk seemed optimistic about Tesla’s future during the earning call of last week, where the company reported a decrease in 71% profits and a 9% revenue drop. “We are not on the irregular edge of death,” Musk assured investors, “not even close.”
The current state of succession planning is still clear, according to the Journal. He adds that it is not clear if Musk, who has directed Tesla for almost 20 years, was aware of the effort.
