Tesla's board initiated a search for a new CEO to replace Elon Musk, as reported by the Wall Street Journal, due to Tesla's declining stock price and Musk's commitment to a government role. The stock had dropped 45% this year, prompting the board's patience to wane, especially after a 71% plunge in first-quarter earnings. Musk announced he would step back from his government duties to focus on Tesla, although it remains unclear if this decision impacts the search for his successor. Musk's awareness of the board's actions is uncertain, as neither he nor Tesla responded to requests for comment. The board's decision highlights the pressures faced by the company amid market volatility and leadership concerns.

Tesla's board contacted executive placement firms in March to start searching for a new CEO due to frustrations with declining stock performance linked to Elon Musk's divided attention between Tesla and his government role.

The company's stock had fallen by as much as 45% during the year, affecting the board's confidence in Musk's leadership, especially as he spent considerable time on government efficiency initiatives.

First-quarter earnings revealed a dramatic 71% drop, intensifying concerns about the company's financial health and Musk's capacity to steer Tesla back on track.

Elon Musk announced his intention to step back from his government responsibilities and refocus on Tesla, but it is unclear if this decision has altered the board's succession planning efforts.

There is no confirmation on whether Elon Musk was aware of the board's search for his replacement, and neither he nor Tesla provided a comment on the Wall Street Journal's report.

The uncertainty surrounding Tesla's leadership situation underscores the challenges faced by the company in maintaining stability and investor confidence amidst significant market fluctuations.

The Wall Street Journal's report has brought attention to the internal dynamics at Tesla, as the board seeks to protect the company's future amidst leadership uncertainties and financial setbacks.