Tesla Inc.'s (NASDAQ:TSLA) board reportedly began searching for a successor to Elon Musk after the company faced significant financial setbacks.
What Happened: About a month ago, the board reached out to executive search firms to formalize a process for selecting a new CEO, reported the Wall Street Journal on Wednesday, citing people familiar with the discussion.
Musk, who has led Tesla for nearly two decades, was reportedly spending considerable time in Washington, D.C., assisting with the Department of Government Efficiency under President Donald Trump.
Musk did not push back, the report said, and the board told him he needed to devote more time to Tesla and publicly commit to doing so.
Tesla did not immediately respond to Benzinga's request for comments.
See Also: Trump’s AI And Crypto Czar David Sacks Says Elon Musk Going To ‘Stay Involved’ In DOGE, Calls Entrepreneur Rationing His Time Sensible
Why It’s Important: Tesla reported first-quarter revenue of $19.34 billion, marking a 9% decline compared to the previous year. This figure fell short of the Street’s consensus estimate of $21.35 billion.
During the earnings call, Musk announced, "Starting probably next month, in May, my time allocation to DOGE will drop significantly."
On Wednesday, Alexandra Merz, who is one of Tesla’s shareholders, took to X, formerly Twitter, and said, Tesla filed an amendment to its annual 10-K, providing details about board and executive compensation, rather than the anticipated proxy statement with shareholder meeting dates and agendas.
This suggests a potential delay in the meeting.
In the filing, Tesla stated, “The Board of Directors has not yet established the date of the 2025 annual meeting of shareholders. When the date is established, the Company will announce it in its filings made with the SEC.”
Price Action: During Wednesday's regular session, Tesla shares fell by 3.38%, but showed a slight rebound in after-hours trading, rising by 0.13%. Year-to-date, the stock is still down 25.61%, according to Benzinga Pro.
As per Benzinga Edge Stock Rankings, Tesla currently holds a growth score of 45.33%. Click here to see how it stacks up against other companies in the sector.
Photo Courtesy: Frederic Legrand – COMEO On Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
