Morristown, New Jersey — Shares of Tesla Inc. experienced a decline of up to 3% in early trading on the Robinhood platform, following news that the company’s board is actively seeking a new chief executive to replace Elon Musk. This development comes amid disappointing financial results that revealed significant drops in both sales and profits.
Tesla’s board of directors has reportedly approached several executive search firms to facilitate this transition, according to sources familiar with the matter. The move highlights ongoing concerns about the company’s leadership and performance, especially as it faces increasing scrutiny in a competitive electric vehicle market.
In the first quarter, Tesla’s revenue was down by 9% compared to the previous year, totaling $19.34 billion. This figure fell short of analyst expectations, which had projected revenue of approximately $21.11 billion. Revenue generated from vehicle sales notably dropped by 20%, hitting $14 billion, as the company adjusted production lines to launch an updated version of its popular Model Y SUV. Contributing factors also included falling average prices and various sales incentives that burdened both revenue and profit margins.
The financial difficulties have been particularly pronounced, with the company’s net income plummeting 71% to $409 million, or 12 cents per share, down from $1.39 billion, or 41 cents per share, a year earlier. Since the beginning of 2025, Tesla’s stock price has fallen over 30%, underscoring the challenges facing the automaker as it navigates these turbulent times.
Musk, who has been balancing his role at Tesla with significant commitments at the White House, indicated during a recent earnings call that he intends to devote only a day or two each week to his duties at the newly established Department of Government Efficiency. Critics now suggest that Musk’s political engagements may be detracting from his focus on Tesla, further complicating the company’s operational strategy.
While the board’s search for a new CEO signals unrest within the organization, stakeholders will be watching closely to understand how this leadership change may impact Tesla’s future. The electric vehicle market remains highly competitive, and how Tesla responds to these challenges will be crucial for its ongoing viability.
As the situation develops, it remains uncertain how a new leadership structure might influence Tesla’s operational goals and overall market presence.
