According to a Wall Street Journal story published Wednesday night, which cited many anonymous individuals, Tesla‘s board reached out to several executive placement companies in March to start the process of finding a new CEO to succeed Elon Musk as the head of the troubled electric vehicle manufacturer.

The Journal stated that it is unclear whether those search attempts are still ongoing or what the timeline would represent for Musk’s removal.

Given that Musk spent a large portion of his time working for the White House’s Department of Government Efficiency (DOGE) initiatives, the startling revelation implies that the board’s patience was strained by Tesla’s dormant stock price (TSLA), which fell as much as 45% this year prior somewhat rebounding within a broader stock market rebound.

Last Monday, Tesla announced that its first-quarter sales and profit had plummeted. The alarming news that the company’s profitability had plummeted by 71% may have been masked by Musk’s revelation that he would be leaving his position in the government and rejoining Tesla on the same day. 

According to the Journal, it’s unclear if Musk’s declared return changed the course of the succession plans. A request for comment from Tesla and Musk was not answered.

The Journal also questioned whether Musk, a board member of Tesla, was aware of the search operation. According to the report, directors advised Musk that he needed to work for the company more frequently at the same time the board started searching for a possible new CEO. According to the Journal, Musk didn’t resist.

Investors had chastised Musk for working too little at his own publicly traded company even before he joined Trump’s White House. Musk invested a lot of his energy in the last few years to drastically transform Twitter, which is now X, after purchasing the company in 2022. Even though he is no longer its CEO, he actively participates in its activities and has come under fire for promoting far-right and Nazi propagandists, making prejudiced remarks, and spreading conspiracy theories.

However, since Tesla imports numerous parts but produces the majority of its cars in the US, Trump’s recent easing of his auto tariffs plan could help the company in the US. Trump’s recent executive orders would temporarily lessen the 25% tax that was supposed to be applied to such parts beginning this weekend for American manufacturers like Tesla.

Tesla’s Troubling Quarter

Beginning in May, he declared that he would only be contributing a day or two a week to DOGE’s operations, leaving his practically full-time position as its chairman.
Tesla just revealed the largest sales decline in its history, which contributed to the sharp dip in profits for the quarter.

Tesla CFO Vaibhav Taneja recognized the impact of the controversy on sales during the call with investors, despite Musk’s attempts to downplay the effect of the protests on profits and sales.

Musk Considering Leaving Tesla

According to a confidant who spoke to the Journal, Musk has stated in recent months that he does not want to lead Tesla as CEO. Musk reportedly stated that he was worried that a successor would not carry out his plan to turn Tesla into a company that specializes in selling autonomous vehicles. However, he may have been inspired to quit anyhow after losing yet another legal battle to obtain his outrageously large compensation package, which was the highest ever offered by a publicly traded corporation.

In the 2022 Delaware court action, Tesla board members testified that they believed it was essential to provide Musk that enormous bundle of stock options in order to keep him engaged and focused on managing Tesla.