Catenaa, Thursday, April 03, 2025- The Tesla board has reportedly asked Elon Musk to step down as CEO due to declining Tesla sales and his increasingly controversial public behavior.1
Musk is yet to respond to the reports.
Amid growing pressure, Tom Zhu, president of Tesla China, has emerged as a potential successor. The board, previously criticized for inaction, is seeking a new CEO to address the company’s sales slump.2
Zhu, who played a key role in expanding Tesla’s operations in China and overseeing the Shanghai Gigafactory, is seen as a strong candidate.
Reports said that Musk would remain involved but not in a leadership role. This follows a period of missed sales targets and growing public backlash against Musk’s actions.
Tesla investor Ross Gerber has also called for Elon Musk to step down as CEO or relinquish his other business roles, citing declining stock prices and management concerns.
Tesla shares fell 36% in the first quarter of 2025, the sharpest drop since 2022.
Earlier a Morgan Stanley survey found that 85% of respondents believe Musk’s political activities negatively impact Tesla, as concerns mount over his involvement in the Trump administration.
The survey also indicated that many expect lower Tesla deliveries this year.
Gerber, CEO of Gerber Kawasaki Wealth Management, told Sky News that Musk’s focus on his role in the Department of Government Efficiency (DOGE) has distracted him from Tesla.
“I think Tesla needs a new CEO. The business has been neglected for too long,” he said.
Tesla has also faced backlash from consumers. French businessman Romain Roy canceled an order for 15 Tesla vehicles in protest of Musk’s political ties.
Despite the turmoil, Musk has not indicated any plans to step down.
- cleantechnica.com: https://cleantechnica.com/2025/04/01/tesla-board-asks-elon-musk-to-step-down/[↩]
- hindustantimes.com: https://www.hindustantimes.com/world-news/us-news/elon-musk-to-be-replaced-by-tom-zhu-as-tesla-ceo-heres-what-we-know-101743500920150.html[↩]
