Palo Alto (TDI): Tesla has categorically denied recent claims suggesting that its board of directors is seeking a replacement for Elon Musk as Chief Executive Officer.
The denial comes in response to a Wall Street Journal report stating that the board initiated a search last month, allegedly due to concerns over Musk’s dual commitments and Tesla’s declining stock performance.
The report cited unnamed sources who claimed Musk’s involvement with U.S. President Donald Trump’s administration — particularly his leadership of the Department for Government Efficiency (Doge) — had become a point of contention among Tesla board members.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
— Elon Musk (@elonmusk) May 1, 2025
It also linked the search to investor unease over Musk’s political affiliations and the company’s recent financial setbacks.
Tesla swiftly refuted the report. In a statement issued Thursday, the company labeled the claims as “absolutely false.” Tesla Chair Robyn Denholm also addressed the matter on social media platform X, stating, “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).” She reaffirmed the board’s full confidence in Musk, stating he remains committed to Tesla’s long-term vision.
Elon Musk, who has been the public face of Tesla since its early days, responded forcefully on X, accusing the Wall Street Journal of journalistic misconduct.
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The controversy arises at a sensitive time for Tesla, which has seen increased protests and customer dissatisfaction linked to Musk’s political ties. Some former customers have pledged to boycott the brand, while others have engaged in demonstrations at Tesla dealerships.
Despite political distractions, Musk recently assured investors during a quarterly earnings call that he would be dedicating significantly more time to Tesla. “I’ll be allocating far more of my time to Tesla,” he said, addressing concerns about his divided focus.
With mounting public and investor scrutiny, Tesla’s leadership has emphasized its unified stance: Elon Musk remains at the helm, and the company’s strategic direction under his leadership remains unchanged.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
