The board of Tesla Inc. has initiated a confidential search for a potential successor to CEO Elon Musk, according to a report published by The Wall Street Journal, citing individuals familiar with the matter.

This move signals a growing sense of concern inside Tesla’s leadership ranks over Musk’s divided attention, mounting controversies, and long-term governance challenges. While no final decision has been made, the search effort reportedly began earlier in 2025, and includes both internal and external candidates.

A Quiet but Serious Search

Sources told WSJ that members of Tesla’s board have already consulted with executive recruitment firms to evaluate viable options to eventually replace Musk or support him in a diminished leadership role. While framed as part of broader succession planning, the search has reportedly gained urgency in light of recent events involving Musk’s behavior, business priorities, and regulatory tensions.

Among the names reportedly discussed are:

Tom Zhu, who has led Tesla’s operations in China and now oversees global manufacturing.

JB Straubel, Tesla co-founder and current CEO of Redwood Materials, viewed by some as a visionary with strong technical and cultural alignment.

External candidates from the tech or clean energy sector, capable of managing Tesla’s massive growth and increasing global scrutiny.

Why Now?

Several recent developments appear to have accelerated the board’s search for stability:

Elon Musk’s divided focus: In addition to Tesla, Musk is actively involved in X (formerly Twitter), SpaceX, Neuralink, and AI startup xAI — raising concerns about bandwidth and attention.

Regulatory pressure: Musk’s social media behavior, controversial public statements, and growing political entanglements have led to renewed scrutiny from the SEC and global regulators.

Shareholder unrest: A number of large institutional investors have recently called for stronger corporate governance, and some have openly questioned whether Musk’s leadership still aligns with Tesla’s long-term mission.

One board member, speaking on condition of anonymity, reportedly said:

“This isn’t about removing Elon tomorrow — it’s about preparing for the future, and protecting shareholder value in the process.”

Musk’s Reaction

Elon Musk has not directly commented on the WSJ report, but in a recent post on X, he wrote:

“I will continue to serve Tesla as long as I am useful. And if not — I’ll build something else.”

Historically, Musk has pushed back against any suggestions of stepping down or sharing power, and has previously clashed with board members or regulators questioning his autonomy.

In 2018, Musk agreed to a settlement with the SEC that forced him to step down as Tesla’s chairman, after a controversial tweet about taking the company private. That history remains fresh in the minds of both investors and regulators.

What’s Next?

At present, no timeline for a possible CEO transition has been made public. The WSJ report emphasizes that the process remains preliminary, and it’s possible Musk will continue in his role for the foreseeable future — especially given his central role in Tesla’s innovation and brand identity.

However, the fact that the board is actively exploring alternatives marks a significant shift in Tesla’s internal dynamics. Whether it leads to leadership change or merely tighter oversight, Elon Musk’s grip on Tesla may no longer be as untouchable as once believed.