Tesla's Profits Plunge 71% Amid Succession Rumors

On Wednesday, reports emerged suggesting that Tesla was discreetly searching for a successor to its CEO, Elon Musk, following a sharp decline in sales and the evaporation of profits. According to the report, unnamed sources revealed that members of Tesla's board had reached out to several executive search firms to find a potential replacement for Musk. However, Musk quickly refuted these claims, taking to X to express his anger. He stated, "Publishing an intentionally false article without including a statement from the Tesla board that explicitly denied the claims is a gross violation of ethical standards."

Tesla's board chair, Robyn Denholm, also refuted the report, stating, "Musk and the board have great confidence in his ability to continue executing the exciting growth plans for the future." However, given the board's perceived bias towards Musk, it is difficult to ascertain the true nature of the discussions that may have taken place. Critics have long accused Musk of neglecting the automotive manufacturer, with his controversial actions at the U.S. Department of Efficiency and his political statements sparking international protests. Musk's public approval ratings, once high, have plummeted since his involvement with the Trump administration.

These negative factors are now taking a tangible toll. Tesla recently reported that its net profit for the first quarter of this year had plummeted by 71% compared to the same period last year. Reclaiming lost brand appeal may soon face challenges, especially if Musk continues his work with the U.S. government. In an interview with Axios this week, Musk admitted that the results from his work on DOGE have not been as effective as he had hoped, and hinted that the department's work may continue until the end of Trump's term in 2028.