Elon Musk, the 53-year-old billionaire and visionary behind Tesla, has been a polarizing figure in both the corporate and political spheres. As the long-time CEO of the electric vehicle giant, Musk has steered Tesla through unprecedented growth, making it a household name and a leader in sustainable innovation. But on May 13, 2025, Musk finds himself at the center of a firestorm following reports that Tesla’s board of directors has been quietly searching for his replacement. The news, first broken by the Wall Street Journal in late April, has sent shockwaves through the business world, with Musk and Tesla’s board chair, Robyn Denholm, vehemently denying the claims. As Tesla grapples with declining sales, a tarnished brand image, and Musk’s controversial political involvement, the saga has raised questions about the future of one of the world’s most influential companies—and whether Musk’s days at the helm may be numbered.
The Wall Street Journal’s report, published on April 30, 2025, alleged that Tesla’s board began a formal search for a new CEO as early as March, reaching out to several executive search firms to identify potential successors. According to sources familiar with the discussions, the board’s move was prompted by growing concerns over Musk’s leadership. Tesla has had a tumultuous start to 2025, with first-quarter profits plummeting 71% and revenue dropping 9%, a stark contrast to the company’s previous years of meteoric growth. The stock price, which had surged late in 2024 following Donald Trump’s election victory—boosted by expectations of favorable policies for Musk—has since cratered, falling over 50% from its recent highs. Investors have grown increasingly frustrated with Musk’s prolonged absences, as he has devoted significant time to his role as co-leader of the Department of Government Efficiency (DOGE) in the Trump administration, a position that has seen him push for drastic cuts to federal spending.
Musk’s political activities have not only distracted him from Tesla but have also alienated a significant portion of the company’s customer base. Tesla’s brand, once synonymous with progressive values and environmental consciousness, has taken a hit as Musk’s outspoken support for Trump and his administration’s policies has clashed with the sensibilities of Tesla’s largely liberal clientele. A former Tesla employee, Matthew LaBrot, who was fired in April 2025 after launching a website called Tesla Employees Against Elon, echoed this sentiment in an interview with Business Insider. LaBrot argued that Musk’s political involvement was “harming the company and jeopardizing its future,” claiming that the damage to Musk’s personal brand had become Tesla’s burden. The website’s open letter stated that Tesla was at a “pivotal moment,” urging the board to choose between continuing with Musk as CEO and facing further decline, or moving forward without him to let the company’s products stand on their own merit.
The Wall Street Journal report detailed internal tensions at Tesla, noting that board members had met with Musk to urge him to refocus on the company. They reportedly instructed him to make a public statement affirming his commitment to Tesla, a request Musk did not resist. On April 24, 2025, Musk announced he would scale back his involvement with DOGE to “just a day or two per week” for the remainder of Trump’s term, redirecting his focus to Tesla. However, the timing of this announcement—coming after the board’s alleged outreach to search firms—raised questions about whether the search was already underway and whether Musk’s renewed commitment was enough to assuage the board’s concerns.
The report sparked immediate backlash from Musk and Tesla’s leadership. On May 1, 2025, Tesla’s board chair, Robyn Denholm, issued a scathing denial on the company’s official X account, calling the Wall Street Journal’s story “absolutely false.” Denholm emphasized that the board had communicated its denial to the media before the report was published, accusing the outlet of journalistic malpractice. “The CEO of Tesla is Elon Musk, and the board is highly confident in his ability to continue executing on the exciting growth plan ahead,” she wrote. Musk himself took to X to denounce the report, accusing the Wall Street Journal of an “extremely bad breach of ethics” for allegedly omitting the board’s denial. “There’s no reason to believe anything these guys say,” Musk fumed, labeling the outlet “a discredit to journalism.”
Despite the denials, the narrative of Musk’s potential replacement has persisted, fueled by Tesla’s ongoing struggles and Musk’s polarizing presence. Analysts have offered mixed perspectives on the situation. Dan Ives of Wedbush Securities suggested that the board’s outreach to search firms might have been a “warning shot” to pressure Musk into refocusing on Tesla, noting that Musk’s pledge to prioritize the company likely eased tensions. Ives predicted that Musk would remain CEO for at least five years, arguing that the “code red situation” was now in the rearview. However, Gary Black of The Future Fund LLC, a longtime Tesla bull, estimated that Musk’s exit could lead to a 25% drop in Tesla’s stock price, underscoring the CEO’s critical role in anchoring the company’s $880 billion market cap. Black dismissed the likelihood of Musk’s ouster as “extremely low,” citing his close ties to the board, which includes his brother Kimbal Musk and other allies.
The board’s composition has long been a point of contention among investors. Critics argue that Tesla’s eight-member board, often described as a group of Musk’s “sycophants,” lacks the independence needed to hold him accountable. James McRitchie, a private Tesla investor, told Reuters that he doubted the board would move against Musk, given his influence over their appointments and their unusually high compensation. McRitchie compared Musk to legendary General Electric CEO Jack Welch, noting that much of Tesla’s share price is tied to investors’ reverence for Musk’s persona, often dubbed the “Elon premium.” Yet, this same reverence makes replacing him an enormous risk, as Musk’s departure could alienate his loyal followers—both customers and investors—who see him as the driving force behind Tesla’s vision.
Tesla’s product strategy has also come under scrutiny amid the CEO saga. The company’s focus on breakout innovations like the Cybertruck, which generated significant buzz but failed to sustain long-term sales, has drawn criticism from consumers and analysts who have long called for more accessible, entry-level vehicles. Forbes noted that Musk’s apparent disengagement—some have even suggested he seems “bored”—has led Tesla to neglect the sustaining innovations needed to maintain growth. The Cybertruck, while a spectacle, has not addressed the broader market’s demand for affordable electric vehicles, leaving Tesla vulnerable to competitors who are rapidly closing the gap in the EV market.
The idea of replacing Musk raises practical questions about who could possibly fill his shoes. Analysts have floated names like JB Straubel, a Tesla co-founder and current board member who now leads Redwood Materials, a battery recycling startup. Straubel, who served as Tesla’s chief technology officer until 2019, is seen as a strong candidate due to his deep ties to the company and his working relationship with Musk. Other potential successors include Gwynne Shotwell, the president of SpaceX, and John Krafcik, former CEO of Waymo and a board member at Tesla competitor Rivian. However, University of Michigan business professor Erik Gordon told Axios that replacing Musk would be nearly impossible, stating, “I can’t think of anybody on the face of the earth or Mars who can replace Elon Musk.” Gordon warned that any successor would likely demand significant concessions, such as independent board members and a hefty severance package, given the inevitable shadow Musk would cast.
For Musk, the reports of a potential replacement have clearly struck a nerve. His public meltdown on X, coupled with his accusations against the Wall Street Journal, reveals a CEO who feels betrayed by the narrative, even as he continues to wield immense influence over Tesla’s direction. Musk’s decision to step back from DOGE suggests he’s aware of the need to refocus, but whether this will be enough to satisfy the board—and Tesla’s investors—remains uncertain. The company’s fortunes remain inextricably tied to Musk’s persona, for better or worse, making the prospect of his replacement a high-stakes gamble.
As Tesla navigates this turbulent chapter, the broader implications for the company and the EV industry are profound. Musk’s leadership has been both Tesla’s greatest asset and its gravest risk, driving innovation while inviting controversy. Whether he remains at the helm or not, Tesla faces a pivotal moment, one that will test its ability to evolve beyond its celebrity CEO and deliver on the promise of sustainable transportation. For now, Musk has spoken out, and the board has backed him—but the whispers of change continue to echo, leaving the future of Tesla, and Musk’s legacy, hanging in the balance.
