Tesla has started a search for a new CEO, which marked a crucial moment for the giant of electric vehicles, since it dealt with a strong drop in profits and a growing reaction on the controversial intervention of Elon Musk in politics.
The measure follows weeks of investors’ disturbances and a strong 71% drop in the profits of the first quarter, with profits falling to $ 409 million, below $ 1.4 billion the previous year. Tesla’s shares have a lunch almost 40% since January, he thought that some recovery followed the earning announcement.
According to the Wall Street Journal, the company’s board began to explore the succession of the CEO earlier this year, since the concerns increased on the double role of Musk as head of Tesla and its political appointment to direct the Trump department. According to the reports, the search begged without the previous knowledge of Musk.
At the request of the Board, Musk announced plans to step back from his political role as of May and dedicate “much more of my time to Tesla.” Duration of the call of the profits of Tesla, Musk acknowledged that the toll that his incursion in Washington has tasks about the brand and the price of the company’s shares.
“From next month, my time assignment to Doge will fall significantly,” he said, while admitting that he still plans to contribute one or two days a week.
The pressure on Musk has intensified as consumers of the Tesla client base, which have once been made, have disappointed their alignment with the leaders of the extreme right.
Protests in Tesla dealers have become increasingly visible. A base campaign, Tesla Takedown, demanded a symbolic victory after the company’s bad financial results.
“Today’s profit report sends a very clear message: Tesla’s demolition base pressure is beginning to affect Tesla where it hurts, the final result of the company,” said the group.
While Tesla remains the best selling EV brand in the US. UU., Analysts warn that their leadership is being reduced as the rivals launch more competitive models. Byd, Rivian, Hyundai and GM have launched EV that exceed Tesla in price, range or load speed.
In his profit statement, Tesla blamed Trump’s aggressive commercial policies and a volatile global supply chain for not having been its cost structure. The president’s reciprocal tariffs, including a 145% tax in Chinese imports, have shaken the automotive industry.
Despite the agitation, Tesla is pressing with plans for a new more affordable electric vehicle that will be launched in early 2025. He also highlighted continuous development in robotics and autonomous driving technology as a long -term vision. However, he warned that cost savings for their EV of $ 25,000, promised for the first time in 2020, would be “less expected.”
As Tesla begins her search for Musk’s potential successor, the company also seeks to appoint an independent director to help stabilize the government amid the growing scrutiny.
Trump, who praised Musk this week for his work at Dege, joked that the CEO could because “return home with his cars.” Musk, in turn, accredited the president for his support, but admitted that political attention had created winds against Tesla.
With the attention of the CEO, he now promised to return, and the reputation of the brand in gold in Flux-Tesla faces a definitive crossroads. Both investors and customers will observe closely to see if the company can recover the approach and tear their domain in an EV market increasingly full of people.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
