May 14, 2025 • 9 mins
Tesla began this year under pressure. The company faced falling global demand, increased competition, and internal strain. The Wall Street Journal reported that Tesla’s board initiated contact with executive search firms in early May. The stated goal was to explore potential replacements for Elon Musk. This story landed at a moment when Musk had just announced he would step back from leadership at his meme-inspired crypto project DOGE. He claimed this decision was to re-focus attention on Tesla, which only deepened speculation.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the. Elon Musk.
Podcast the World's. Authority on.
Tesla. SpaceX X Neurolink and.
All things Elon, I'm your host, Will Walden.
Thanks to our amazing community members like you, we've reached
the top 15 of Spotify's video podcast, the Top 10 audio
podcast on both Apple and Spotify for the tech.
(00:20):
Category. So you all make this possible.
If you want to support us more, check out our Patreon.
That's patreon.com/stage 0 news,so we can keep this free and
open for you to enjoy. Something interesting happened
the other day. I was looking through our stats
on Spotify and Apple Podcast andI noticed that about. 50. 5% of
(00:44):
you are not subscribed to the show.
That means 45% of you are subscribed and I really do
appreciate your support. Now the.
Other 55% of you are awesome, but I'm going to ask you for a.
Favor, could you please hit the?Subscribe button.
It'll take you one second. I'm going to promise you 10
years of this podcast for free. No pay walls.
(01:04):
I'm not going to charge you anything ever, but I'm going to
give you 10 years of this show for free.
I've already been doing it for five years, and I plan on doing
it for 10 more. And the only way that we can
continue doing this is with yoursupport.
So one second. Of your.
Time to hit the. Subscribe button right now would
help the show tremendously. Thank you so much.
Tesla began this year under pressure.
(01:27):
The company faced falling globaldemand, increased competition,
and internal strain. The Wall Street Journal reported
that Tesla's board initiated contact with executive search
firms in early May. The stated goal was to explore
potential replacements for Elon Musk.
This story landed at a moment when Musk had just announced he
would step back from leadership at his meme inspired crypto
(01:49):
project DOGE. He claimed this decision was to
refocus attention on Tesla, which only deepened speculation.
But that report was met with forceful pushback.
Tesla board chair Robin Denholm said the board maintained full
confidence in Musk and flatly denied any effort to replace
him. Elon Musk also denied the story
(02:10):
outright. Tesla declined to respond to
Business Insider's request for comment.
Despite those denials, the question remains active.
If Elon Musk left, who could take over?
The question is not new. In 2022, during testimony over
Musk's contested $55 billion compensation package, Tesla
board member James Murdoch said Musk had named a possible
(02:32):
successor. He didn't provide a name.
That admission did not 'cause major concern at the time.
But today, amid a difficult year, it feels more urgent.
Musk has LED Tesla since 2008. During that time, he has become
not just the public face of the company, but a figure investors
consider inseparable from Tesla's valuation.
(02:52):
Deepwater Asset Management's Gene Munster said Musk holds
Tesla together and pushes it forward.
He believes Musk is irreplaceable.
Munster suggested Tesla's stock could fall 25% or more if Musk
left. That figure reflects not just
Musk's influence, but the perception that Tesla is still
more than a car company. Bradley Tusk, A venture
(03:14):
capitalist and political adviser, echoed that belief.
He pointed to a key data point. Tesla's market capitalization
remains larger than the combinedtotal of the next nine biggest
automakers. But in terms of unit sales,
Tesla doesn't even crack the top15.
Tusk said the only explanation is investor faith in Musk.
Without Musk, he said, Tesla would be viewed like any other
(03:37):
automaker. That explains why replacing Musk
would be so difficult. The company is structured around
his presence. Analysts believe any replacement
would need to come from within Tesla.
Gene Munster said Tesla's internal culture resists
outsiders. The company values disruption
and favors people who understandits internal rhythm and
operational speed. There are a few potential
(03:58):
internal candidates. Tom Zhu, Tesla's senior vice
president of automotive, leads that list.
He helped scale Tesla's operations in China and now
overseas global automotive operations.
Zhu was seen on the ground during major production pushes,
and he's known for being hands on.
He lives in a company dormitory,eats in the factory cafeteria
(04:19):
and models the kind of full immersion leadership Musk
favors. Another candidate is Vaibhav
Tunisia, Tesla's current chief financial officer.
Tunisia assumed that role in 2023 after years of managing
financial operations within Tesla's demanding structure.
His promotion came after ZacharyKirkhorn's departure, which
(04:40):
surprised some investors. Tenaja had a long track record
inside Tesla and was trusted with maintaining fiscal control
at a time when margins were tightening due to global
competition. 1/3 possibility is Omayyad Afshar, Elon Musk's
former chief of staff. Afshar oversaw construction of
the Texas Gigafactory, which became a key site for Model Y
(05:02):
production and cyber truck development.
Former Tesla employees describedAfshar as a final checkpoint for
people trying to reach Musk. He acted as a filter enforcing
Musk's priorities across departments.
Seth Goldstein, an analyst at Morningstar, explained that
Tesla's flat management structure gives division heads
wide autonomy. This approach turns executives
(05:23):
into semi independent operators.Goldstein said that in this
model, Tesla creates strong internal candidates without
formally grooming them as successors.
Leaders already manage critical functions with minimal
oversight, which could ease a transition if needed.
Still, there's a difference between operating a unit and
steering the entire company. Tesla's mission, branding and
(05:44):
public image are deeply tied to Musk.
His behavior influences markets directly.
A single post on X can move Tesla's stock or change how
customers perceive the brand. No internal candidate, no matter
how skilled, matches that level of public impact.
Investors are keenly aware of this.
Retail traders follow Musk as much as they follow the company.
(06:06):
Institutional investors place value on his continued
involvement. Tesla's valuation includes an
Elon premium, an intangible asset tied to his presence.
Removing Musk doesn't just create an operational gap, it
changes the identity of Tesla. That's why analysts think Musk
will stay in some capacity even if he ever gives up the CEO
title. Gene Munster said he doubts Musk
(06:28):
would ever fully exit Tesla. Instead, he expects Musk to
maintain strategic control whileinstalling a loyal executive to
handle daily operations. This would preserve investor
confidence and allow Musk to refocus on his other companies
without causing panic. Tesla's dependency on Musk
raises questions about long termstability.
No company can hinge its future on a single individual
(06:50):
indefinitely. Succession planning is not just
about who replaces Musk, but about whether Tesla can exist
independently of him. As Tesla grows, it needs a
structure that can function without crisis if Musk steps
away. This story matters because Tesla
effects millions of people, fromshareholders and employees to
customers and partners. Tesla's choices shape the future
(07:14):
of electric vehicles and energy products.
A leadership transition would ripple across supply chains, job
markets, and consumer expectations.
The company also serves as a case study for personality
driven corporate growth. Investors have rewarded Tesla
not just for innovation, but forspectacle.
That model raises risk. If Tesla cannot transition
(07:35):
leadership without damaging its stock or morale, then its growth
has been built on unstable foundations.
Another reason this story matters is because it touches on
corporate governance. Tesla has faced questions about
board independence, executive pay, and transparency.
The Musk succession issue ties into all of these.
Boards that fail to prepare for CEO transitions increase
(07:56):
vulnerability to shocks. The denial of the CEO search
report may be true, or it may bea strategic delay.
Musk's central role at Tesla is undeniable, but history shows
that even the most iconic CE OS eventually leave.
The companies that survive long term are the ones that plan
ahead. Whether Tesla is doing that
(08:16):
remains unclear. The current speculation about
Musk's future reflects concern, not fantasy.
Tesla's performance this year has opened real questions.
The stock is down. Sales have weakened.
Public trust in long term planning is thin.
A transition, even a hypothetical 1, feels more real
than ever. I want to say thank you so much
(08:39):
for tuning into the show today. I really.
Do appreciate your support. If you could take a second and
hit the subscribe or the follow button on whatever podcast
platform that you're listening on right now, I greatly
appreciate it. It helps out the show
tremendously. And you'll.
Never miss an episode and each episode is about 10 minutes or
less to get you caught up. Quickly.
(09:00):
And please, if you want to support the show even more, go
to patreon.com/stage Zero and please take care of yourselves
and each other and I'll see you tomorrow.
Welcome back to the. Elon Musk.
Podcast the World's. Authority on.
Tesla. SpaceX X Neurolink and.
All things Elon, I'm your host, Will Walden.
Thanks to our amazing community members like you, we've reached
the top 15 of Spotify's video podcast, the Top 10 audio
podcast on both Apple and Spotify for the tech.
(00:20):
Category. So you all make this possible.
If you want to support us more, check out our Patreon.
That's patreon.com/stage 0 news,so we can keep this free and
open for you to enjoy. Something interesting happened
the other day. I was looking through our stats
on Spotify and Apple Podcast andI noticed that about. 50. 5% of
(00:44):
you are not subscribed to the show.
That means 45% of you are subscribed and I really do
appreciate your support. Now the.
Other 55% of you are awesome, but I'm going to ask you for a.
Favor, could you please hit the?Subscribe button.
It'll take you one second. I'm going to promise you 10
years of this podcast for free. No pay walls.
(01:04):
I'm not going to charge you anything ever, but I'm going to
give you 10 years of this show for free.
I've already been doing it for five years, and I plan on doing
it for 10 more. And the only way that we can
continue doing this is with yoursupport.
So one second. Of your.
Time to hit the. Subscribe button right now would
help the show tremendously. Thank you so much.
Tesla began this year under pressure.
(01:27):
The company faced falling globaldemand, increased competition,
and internal strain. The Wall Street Journal reported
that Tesla's board initiated contact with executive search
firms in early May. The stated goal was to explore
potential replacements for Elon Musk.
This story landed at a moment when Musk had just announced he
would step back from leadership at his meme inspired crypto
(01:49):
project DOGE. He claimed this decision was to
refocus attention on Tesla, which only deepened speculation.
But that report was met with forceful pushback.
Tesla board chair Robin Denholm said the board maintained full
confidence in Musk and flatly denied any effort to replace
him. Elon Musk also denied the story
(02:10):
outright. Tesla declined to respond to
Business Insider's request for comment.
Despite those denials, the question remains active.
If Elon Musk left, who could take over?
The question is not new. In 2022, during testimony over
Musk's contested $55 billion compensation package, Tesla
board member James Murdoch said Musk had named a possible
(02:32):
successor. He didn't provide a name.
That admission did not 'cause major concern at the time.
But today, amid a difficult year, it feels more urgent.
Musk has LED Tesla since 2008. During that time, he has become
not just the public face of the company, but a figure investors
consider inseparable from Tesla's valuation.
(02:52):
Deepwater Asset Management's Gene Munster said Musk holds
Tesla together and pushes it forward.
He believes Musk is irreplaceable.
Munster suggested Tesla's stock could fall 25% or more if Musk
left. That figure reflects not just
Musk's influence, but the perception that Tesla is still
more than a car company. Bradley Tusk, A venture
(03:14):
capitalist and political adviser, echoed that belief.
He pointed to a key data point. Tesla's market capitalization
remains larger than the combinedtotal of the next nine biggest
automakers. But in terms of unit sales,
Tesla doesn't even crack the top15.
Tusk said the only explanation is investor faith in Musk.
Without Musk, he said, Tesla would be viewed like any other
(03:37):
automaker. That explains why replacing Musk
would be so difficult. The company is structured around
his presence. Analysts believe any replacement
would need to come from within Tesla.
Gene Munster said Tesla's internal culture resists
outsiders. The company values disruption
and favors people who understandits internal rhythm and
operational speed. There are a few potential
(03:58):
internal candidates. Tom Zhu, Tesla's senior vice
president of automotive, leads that list.
He helped scale Tesla's operations in China and now
overseas global automotive operations.
Zhu was seen on the ground during major production pushes,
and he's known for being hands on.
He lives in a company dormitory,eats in the factory cafeteria
(04:19):
and models the kind of full immersion leadership Musk
favors. Another candidate is Vaibhav
Tunisia, Tesla's current chief financial officer.
Tunisia assumed that role in 2023 after years of managing
financial operations within Tesla's demanding structure.
His promotion came after ZacharyKirkhorn's departure, which
(04:40):
surprised some investors. Tenaja had a long track record
inside Tesla and was trusted with maintaining fiscal control
at a time when margins were tightening due to global
competition. 1/3 possibility is Omayyad Afshar, Elon Musk's
former chief of staff. Afshar oversaw construction of
the Texas Gigafactory, which became a key site for Model Y
(05:02):
production and cyber truck development.
Former Tesla employees describedAfshar as a final checkpoint for
people trying to reach Musk. He acted as a filter enforcing
Musk's priorities across departments.
Seth Goldstein, an analyst at Morningstar, explained that
Tesla's flat management structure gives division heads
wide autonomy. This approach turns executives
(05:23):
into semi independent operators.Goldstein said that in this
model, Tesla creates strong internal candidates without
formally grooming them as successors.
Leaders already manage critical functions with minimal
oversight, which could ease a transition if needed.
Still, there's a difference between operating a unit and
steering the entire company. Tesla's mission, branding and
(05:44):
public image are deeply tied to Musk.
His behavior influences markets directly.
A single post on X can move Tesla's stock or change how
customers perceive the brand. No internal candidate, no matter
how skilled, matches that level of public impact.
Investors are keenly aware of this.
Retail traders follow Musk as much as they follow the company.
(06:06):
Institutional investors place value on his continued
involvement. Tesla's valuation includes an
Elon premium, an intangible asset tied to his presence.
Removing Musk doesn't just create an operational gap, it
changes the identity of Tesla. That's why analysts think Musk
will stay in some capacity even if he ever gives up the CEO
title. Gene Munster said he doubts Musk
(06:28):
would ever fully exit Tesla. Instead, he expects Musk to
maintain strategic control whileinstalling a loyal executive to
handle daily operations. This would preserve investor
confidence and allow Musk to refocus on his other companies
without causing panic. Tesla's dependency on Musk
raises questions about long termstability.
No company can hinge its future on a single individual
(06:50):
indefinitely. Succession planning is not just
about who replaces Musk, but about whether Tesla can exist
independently of him. As Tesla grows, it needs a
structure that can function without crisis if Musk steps
away. This story matters because Tesla
effects millions of people, fromshareholders and employees to
customers and partners. Tesla's choices shape the future
(07:14):
of electric vehicles and energy products.
A leadership transition would ripple across supply chains, job
markets, and consumer expectations.
The company also serves as a case study for personality
driven corporate growth. Investors have rewarded Tesla
not just for innovation, but forspectacle.
That model raises risk. If Tesla cannot transition
(07:35):
leadership without damaging its stock or morale, then its growth
has been built on unstable foundations.
Another reason this story matters is because it touches on
corporate governance. Tesla has faced questions about
board independence, executive pay, and transparency.
The Musk succession issue ties into all of these.
Boards that fail to prepare for CEO transitions increase
(07:56):
vulnerability to shocks. The denial of the CEO search
report may be true, or it may bea strategic delay.
Musk's central role at Tesla is undeniable, but history shows
that even the most iconic CE OS eventually leave.
The companies that survive long term are the ones that plan
ahead. Whether Tesla is doing that
(08:16):
remains unclear. The current speculation about
Musk's future reflects concern, not fantasy.
Tesla's performance this year has opened real questions.
The stock is down. Sales have weakened.
Public trust in long term planning is thin.
A transition, even a hypothetical 1, feels more real
than ever. I want to say thank you so much
(08:39):
for tuning into the show today. I really.
Do appreciate your support. If you could take a second and
hit the subscribe or the follow button on whatever podcast
platform that you're listening on right now, I greatly
appreciate it. It helps out the show
tremendously. And you'll.
Never miss an episode and each episode is about 10 minutes or
less to get you caught up. Quickly.
(09:00):
And please, if you want to support the show even more, go
to patreon.com/stage Zero and please take care of yourselves
and each other and I'll see you tomorrow.
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