Tesla Denies Claims That They Are Looking To Replace CEO Elon Musk
Tesla has firmly denied a report claiming its board is searching for a new CEO to replace Elon Musk. The Wall Street Journal alleged that board members had approached executive search firms due to concerns over Musk’s political distractions and the company’s slumping stock, but chair Robyn Denholm has since called the story “absolutely false,” and Musk himself slammed it as a “deliberately false article” on X, accusing the paper of unethical reporting.
The report followed an earnings call last week where Musk admitted he’d be pulling back from his role in the Trump administration's Department of Government Efficiency, saying he'd now spend “far more” time on Tesla. Tesla’s stock has tumbled more than 30% this year, with sales and profits taking a serious hit as net income dropped 71% in the first quarter. Some board members reportedly urged Musk to publicly recommit to the company, which he did, but investors' nerves haven’t entirely eased.
Meanwhile, protests against Tesla and Musk have grown in both the U.S. and Europe due to his political alignment and time spent away from the company. Despite this, Denholm says the board remains “highly confident” in Musk’s leadership and has no plans to replace him. Investors are now watching to see whether Musk's renewed focus can reverse Tesla’s declining performance.
