Tesla’s board reportedly attempted to oust Elon Musk as chief executive officer (CEO), and the Wall Street Journal (WSJ) exclusively reported on Thursday that Musk had considered stepping down from his role at Tesla.
Musk, who has been at the helm of Tesla for about two decades, reportedly sent a late-night text to a close confidant early last year, expressing his frustration by saying he felt “demoralized working tirelessly for the company, even after a Delaware judge struck down a multi-billion-dollar compensation package.”
The WSJ reported that Musk confided that he doesn’t want to be Tesla’s CEO anymore, but he is worried that no one can replace him.
Musk receives only the stock options and does not draw a salary.
However, Tesla’s minority shareholders sued, claiming Musk’s compensation package was excessive, and a Delaware court ruled in their favor.
Currently, Musk owns 410 million Tesla shares, representing 12.8% of the company’s outstanding stock.
The WSJ also reported that Tesla’s board had attempted to remove Musk. Citing well-informed sources, the paper stated that Tesla directors had contacted a headhunting firm in an effort to find his successor.
This was reportedly due to the rapid deterioration of the company’s sales and profits as Musk became distracted by political matters.
Consequently, Tesla’s board met with Musk, asking him to devote more time to the company.
However, Musk rebuffed their request, saying he had more to do. Following this, the board began actively searching for a new CEO.
Against this backdrop, Tesla announced its earnings on April 22. During the announcement, the company revealed that its net profit had plummeted by 71% compared to the previous year.
As the market reacted strongly to this news, Musk made a surprise announcement during the post-earnings conference call, stating he would dedicate significantly more time to Tesla starting the following month. This declaration led to a temporary surge in the stock price.
The WSJ reported that it remains unclear whether Musk was aware of the board’s efforts beforehand, or if his promise to dedicate more time to Tesla led to the cancellation of the succession plan. Musk has not responded to requests for comment on this matter.