After reports from the Wall Street Journal revealed that Tesla’s board of directors is seeking a new CEO to replace Elon Musk, the board chairman, Robyn Denholm, came out dismissing the issue, stating that the board fully believes in Elon.
However, investors, analysts, and close news sources have pointed out that this potential new CEO is already overseeing 5 other companies and recently took on a role as an advisor to Trump on DOGE. It has been reported that he is willing to reduce his role in DOGE to refocus on Tesla.
Analysts argue that Tesla’s stock value primarily hinges on promises of developing self-driving technology and humanoid robots, yet actual deliveries are yet to materialize. Furthermore, in the EV market, sales have declined due to increased competition from Chinese companies.
The underlying concern is the risky proposition of finding a replacement for Elon Musk, as Tesla’s identity is closely tied to him.
One suggested solution is to appoint a new CEO to handle operations while allowing Elon to remain as a symbolic leader, similar to his role at SpaceX with Gwynne Shotwell, the COO, taking charge of management duties.
Source: Reuters(1)(2), WSJ
TLDR: Tesla’s board seeks a new CEO to potentially replace Elon Musk, raising concerns over the company’s future direction and identity.
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