Tesla chair Robyn Denholm has denied a Wall Street Journal report claiming that the company’s board had approached executive search firms to find a replacement for CEO Elon Musk.
Denholm called the article “absolutely false,” emphasizing that the board remains “highly confident” in Musk’s leadership as the company continues to execute its growth plans. Musk also dismissed the report as “deliberately false” on social media.
The Wall Street Journal article, citing anonymous sources, stated that Tesla’s board had reached out to several executive search firms a month ago in search of a new CEO. The report added that the board’s growing concerns were linked to Musk’s shifting focus away from Tesla’s core electric vehicle (EV) business.
Instead of focusing on the company’s promise to deliver an affordable EV platform, Musk has pivoted towards driverless taxis and humanoid robots, positioning Tesla as a leader in AI and robotics rather than just electric vehicles.
Despite Tesla’s innovation in AI and robotics, the company’s stock has faced significant pressure, with a sharp decline in EV sales in the U.S. and Europe. This has been compounded by backlash against Musk’s political affiliations and the rising competition from new EV models.
Musk’s involvement in the Trump administration, particularly his efforts to streamline federal employment through the Department of Government Efficiency, has also sparked criticism. His time away from Tesla has raised concerns among investors, especially as sales of Tesla’s aging EV models have dropped.
However, Musk committed to reducing his time in the administration to focus more on Tesla’s operations.
In response to the reported search for a new CEO, Musk met with board members, reportedly acknowledging the need to dedicate more time to Tesla. Despite these efforts, Tesla’s shares have continued to face volatility, with significant sales drops in France and Denmark in April.
Tesla’s board, which includes Musk’s brother Kimbal Musk and media executive James Murdoch, has been under scrutiny over its governance and Musk’s leadership. The company’s efforts to add an independent director to the board are part of an ongoing attempt to address concerns regarding governance.
Denholm, who was hand-picked by Musk, has defended her pay package amid criticism of her compensation and its potential impact on her oversight role.
Despite the challenges, Tesla’s stock saw a slight increase in premarket trading on Thursday, partly driven by regulatory developments that eased autonomous vehicle testing rules, providing some positive momentum for the company.
