Reports claim Tesla to find replacement for CEO Elon Musk, Tesla chair denies

After a report claimed that electric car maker Tesla’s board is planning to replace Elon Musk as CEO, Robyn Denholm, Chairman of the board of directors at Tesla Motors, on Thursday denied the report, saying “this is absolutely false ..” 

The Wall Street Journal (WSJ) reported that as sales and profits tanked with Musk focusing on his work with the Donald Trump administration, “Tesla’s board began mulling a replacement, it also met with Musk, telling him he had to spend more time with Tesla”.

In a post on X social media platform, Denholm said there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.

“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead,” Denholm posted.

Musk also reacted, saying “WSJ is a discredit to journalism”.

According to the report, Tesla’s board beginning a search for a new chief executive and making demand on Musk would be a departure, as it “has traditionally been seen as extremely deferential to the billionaire”.

On Tesla Q1 earnings call last week, Musk confirmed he would soon spend most of his time at the EV major again. The news resulted in Tesla stock surging again.

Tesla’s Q1 total revenue declined 9% to $19.34 billion from $21.3 billion a year earlier. Automotive revenue dropped 20% to $14 billion from $17.4 billion in the same period last year.

Net income also dropped 71% to $409 million, from $1.39 billion a year ago.

Tesla said one reason for the decline was the need to update lines at its four vehicle factories to start making a refreshed version of its popular Model Y SUV.

The electric car-maker refrained from promising growth this year and said it will “revisit our 2025 guidance in our Q2 update.”

According to a report by an American newspaper, discussions had intensified in recent weeks as investor concerns mount over Musk’s increasing involvement in political activities and the company’s declining financial performance.

The board reported concerns center around Musk’s active role in the White House’s Department of Government Efficiency (DOGE), under the Trump administration. 

His federal duties and outspoken political views, particularly his alignment with far-right movements in Europe, have sparked protests at Tesla facilities and raised fears among shareholders about the brand’s public image, as per reports.

Tesla stock has fallen sharply over the past year– at one point down 45%--before seeing partial recovery, as per the reports. 

(With input from syndicated feed)