The Tesla board of directors has quietly initiated the search for a possible successor to CEO Elon Musk, as concerns mount over the company’s flagging sales in key markets and growing damage to its public image.
According to sources familiar with the matter, the search remains in early stages, with no formal announcement yet made. However, board members have reportedly acknowledged the need for long-term leadership planning amid growing instability.
This shift in tone comes as new vehicle registration data from France highlights Tesla’s alarming market decline in the region, coupled with mounting reputational challenges.
While the French automotive market saw an overall year-on-year decline of 5.64% in April, Tesla’s sales in the country plunged by a staggering 59.45% over the same period.
The year-to-date numbers tell a similarly grim story: France’s car market shrank by 7.28%, but Tesla’s sales slumped by 43.98%.
“Those figures are not just concerning—they’re catastrophic for a company that once prided itself on aggressive growth,” said auto industry analyst Jacques Meunier. “It suggests Tesla is losing its grip on European consumers, and something has to give.”
Insiders say part of the board’s concern stems from Elon Musk’s increasingly erratic behavior and controversial public appearances.
One such controversy erupted recently when an image circulated online appearing to show Musk making a Nazi-style salute during a public appearance.
Although Musk and his team have not officially responded to the photo, the incident quickly went viral and triggered backlash on social media and in news coverage around the globe.
The image has intensified criticism already building around Musk’s online conduct, political affiliations, and controversial statements, many of which have alienated potential customers.
Branding experts warn that the billionaire’s increasingly polarizing persona is tarnishing Tesla’s image, especially in sensitive European markets where environmental and ethical branding remain vital to consumer loyalty.
“This isn’t just about sales—it’s about trust,” said Gabrielle Dumont, a Paris-based brand strategist. “Tesla’s customer base includes people who care deeply about social values.
Musk’s antics and the association with extremist symbolism, whether deliberate or not, create reputational risks the brand may not recover from if not addressed.”
Tesla has not issued any public comment regarding either the reported CEO succession plans or the controversies surrounding Musk. Requests for comment were not immediately returned.
Despite being the face of Tesla since its early rise, Musk’s recent focus on other ventures—ranging from his ownership of X (formerly Twitter) to involvement in AI and space exploration—has led to concerns that his attention is spread too thin.
Investor patience appears to be wearing thin as well, with Tesla’s share price experiencing volatile swings over the past year.
As the board deliberates the future of Tesla’s leadership, analysts suggest the company may need a fresh face to stabilize its brand and regain consumer confidence—particularly in global markets where Musk’s persona has become more liability than asset.
Whether the company takes decisive action or continues to weather the storm with Musk at the helm remains to be seen.
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