Tesla opens search for a CEO to replace Elon Musk: Report

Tesla, once helmed by Elon Musk, is now looking for a CEO.

"About a month ago, with Tesla’s TSLA -3.38%decrease; red down pointing triangle stock sinking and some investors irritated about Elon Musk’s White House focus, Tesla’s board got serious about looking for Musk’s successor," the Wall Street Journal reported.

"The board narrowed its focus to a major search firm, according to the people familiar with the discussions. The current status of the succession planning couldn’t be determined," the media report said adding that it is not clear if Musk himself is aware of the decision. The report further mentioned that an eight-person Tesla board has been looking to add an independent director.

At Tesla, which is one of 5 businesses Musk oversees, more than 20 executives directly report to him, the report mentions. He has been spending more time in Washington these days and employees have said that "the first time they had heard from Musk in months was at an all-hands meeting in March, streamed to all X users, where he tried to reassure employees and persuade them not to sell their shares." Currently, Musk runs the US government's Department of Government Efficiency. In this capacity, he is expected to work at the White House for 130 days every year.

Who will succeed Elon Musk at Tesla?
There are only a few contenders who can meet upto the expectation of the Tesla CEO, as Elon Musk himself had said, as per the media report, "... he was worried that no one could replace him atop the company and sell the vision that Tesla isn’t just an automaker, but the future of robotics and automation as well."

According to Forbes Australia, among the top contenders for the CEO post is JB Straubel, currently CEO and cofounder of battery recycler and components maker Redwood Materials and a Tesla board member. Straubel was closely associated with Tesla in its earliest days and is one of the five cofounders.

Tom Zhu, Tesla’s only senior vice president is also a good candidate for the top position. With an undergraduate degree from New Zealand’s Auckland University of Technology and an MBA from Duke, Zhu is one of only three company executives listed on Tesla’s corporate website.

Stella Li, executive vice president of auto and battery giant BYD and head of its operations in the Americas can be an ideal candidate for the CEO position in Tesla. Former Waymo CEO John Krafcik is another popular choice. Hyundai Motor’s CEO, José Muñoz is the third outsider who is being considered a good candidate for this job.