The Wall Street Journal’s claim that Tesla’s board is seeking to replace Elon Musk as CEO has been strongly denied by the company. According to the Journal, board members approached executive search firms in March to explore CEO succession plans, citing anonymous sources. However, Tesla Chair Robyn Denholm publicly refuted the report on the company’s official X account, reaffirming the board’s full confidence in Musk’s leadership.
The report emerged during a difficult period for Tesla, as first-quarter profits plummeted by 71%, and Musk faced mounting scrutiny over his involvement with the White House’s Department of Government Efficiency (DOGE). Musk has since announced he will reduce his government role to just one or two days a week starting in May, recommitting himself to Tesla’s operations.
Musk responded sharply to the Journal‘s claims, calling the article a “deliberately false” breach of journalistic ethics. The Wall Street Journal stood by its reporting, stating that Tesla was offered the opportunity to comment before publication but chose not to.
Despite ongoing public tensions and Musk’s polarizing political affiliations, industry analyst Dan Ives of Wedbush believes the situation has stabilized. He suggested that Musk’s recommitment has eased board-level concerns about Tesla’s leadership continuity.
Tesla’s public image, once synonymous with environmental innovation, has suffered due to Musk’s political involvement and controversial behavior. Protests and declining sales have added to investor anxiety. CFO Vaibhav Taneja acknowledged the impact, noting that “unwarranted hostility” had negatively affected sales in key markets.
Musk currently owns 12.8% of Tesla’s outstanding shares. If his contested compensation package is reinstated, he could control over 22% of the company. Despite speculation about his eventual departure, both Tesla’s leadership and investors appear committed to Musk remaining at the helm—for now.
