Tesla searches new CEO as Musk gets pulled into politics
What's the story
The board of Tesla, the top electric vehicle (EV) maker, is on the lookout for a successor to its CEO, Elon Musk.
The company has hired executive search firms to help with the process, The Wall Street Journal report said.
The move comes at a difficult time for Tesla, with its recent quarterly reports showing a 9% drop in revenue and over a 70% decrease in profits year-on-year.
Change in priorities
Musk's focus shift to DOGE
The search for a new CEO started a month ago when Musk turned his attention mostly to the Department of Government Efficiency (DOGE) and the Trump Administration.
This diversion has reportedly resulted in protests against him, his company, and Tesla's products.
Despite this difficult phase, Tesla's board has asked Musk to dedicate more time toward the company.
Future plans
Musk's commitment to Tesla
During Tesla's post-earnings conference call, Musk confirmed his commitment to spending more time at the company.
He said starting May, he will reduce his involvement with DOGE unless requested otherwise by President Trump.
The announcement triggered a partial relief rally in Tesla's stock.
In his farewell address to the Trump cabinet, Musk claimed DOGE had managed significant cost savings, albeit less than originally projected.
Market challenges
Tesla faces competition from BYD
Tesla is also facing tough competition from Chinese EV manufacturer BYD, which has surpassed Musk's company in some areas.
The increased competition could potentially be contributing to the recent dip in Tesla's stock prices.
On Wall Street, Tesla shares ended 3.4% lower in regular trading on Wednesday and fell by another 3% during overnight trading on Robinhood, a popular trading platform.