Tesla CEO Elon Musk has forcefully rejected a recent report suggesting the electric vehicle maker’s board was actively searching for his replacement.
The pushback comes amid significant struggles in Tesla’s stock performance that have left investors questioning the company’s direction.
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The board’s swift denial
When The Wall Street Journal published its report claiming Tesla board members had contacted executive-search firms to begin formally replacing Musk, Tesla’s leadership wasted no time responding.
Tesla Chairman Robyn Denholm issued an unequivocal denial through the company’s X account, calling the report false and affirming that the board had communicated this position prior to publication.
“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 said in a statement posted on Tesla’s official X account, as reported in TheStreet.
Musk himself didn’t mince words. He described the report as a breach of ethics that ignored statements to the contrary by Tesla’s board.
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Tesla’s financial challenges
The leadership controversy couldn’t come at a more sensitive time for the electric vehicle giant. Tesla shares have plummeted nearly 42% since mid-December, erasing approximately $650 billion in market value, according to TheStreet.
This stark decline has coincided with Musk’s involvement in President Trump’s government efficiency initiatives. Investors have increasingly voiced concerns about Musk’s ability to lead Tesla while effectively managing multiple other ventures.
Beyond his recent role advising the White House, Musk maintains leadership positions at SpaceX (including its Starlink internet service), X (formerly Twitter), Neuralink, xAI, and the Boring Company.
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Addressing divided attention
During Tesla’s recent earnings call, following a disappointing 71% drop in first-quarter profits, Musk acknowledged the need to rebalance his commitments.
He told investors that starting in May, his government efficiency work would “drop significantly,” and more attention would return to Tesla.
“I’ll be allocating probably more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done,” Musk explained on the call, as reported in TheStreet.
Despite ongoing concerns, some industry analysts remain bullish on Musk’s tenure at Tesla. Wedbush analyst Dan Ives told TheStreet he expects Musk to remain CEO for at least another five years, suggesting the immediate leadership crisis may be overstated.
Following the denials from the board and Musk, Tesla shares showed modest resilience, edging higher in early trading, a small positive sign after months of challenging performance.
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