Tesla’s board chair, Robyn Denholm, has strongly denied a media report claiming the company is looking for a new CEO to replace Elon Musk. The report, originally published by the Wall Street Journal, stated that Tesla board members had contacted recruitment firms to begin the process of finding a successor. However, Denholm dismissed the claims as “completely untrue.”
She posted on X (formerly Twitter), saying the Tesla board has full confidence in Musk’s leadership and his ability to deliver on the company’s future plans, especially in AI and robotics.
Elon Musk also responded on X, calling the article a “deliberately false story.” Musk has faced growing pressure from shareholders and activists over his involvement in politics and time away from Tesla. Critics say the board has failed to keep Musk focused on Tesla’s performance, especially as electric vehicle (EV) sales have been falling in key markets like the U.S. and Europe.
Tesla Faces Major Challenges
Tesla is shifting focus from making affordable EVs to developing robotaxis and humanoid robots, redefining itself as more than just a carmaker. However, slowing EV sales, rising competition, and Musk’s political involvement have raised red flags.
Musk currently holds a position in Donald Trump’s administration, leading efforts to reduce federal jobs through the Department of Government Efficiency. This role has sparked public backlash and protests, with vandalism reported at Tesla stores and charging stations in both the U.S. and Europe.
Investor Concerns Mount
Tesla’s stock performance has been rocky. Sales plunged in France and Denmark in April, dropping by 59% and 67% respectively compared to last year.
The WSJ claimed Tesla board members met with Musk and urged him to publicly commit to spending more time at Tesla. The report also suggested the board may have taken early steps toward succession planning, though it’s unclear whether Musk was fully aware of those efforts.
Despite the tensions, federal regulators recently relaxed rules for self-driving vehicle testing, which helped boost Tesla’s stock value. Investors still see potential in Musk’s vision for autonomous driving and AI.
Board Under Scrutiny
The Tesla board, which includes Musk’s brother Kimbal Musk and James Murdoch (son of Rupert Murdoch), has been meeting with large shareholders to rebuild confidence.
Chairperson Denholm—who was chosen by Musk and has previously defended his controversial $56 billion pay package—has faced her own criticism. In March, she sold $33.7 million worth of Tesla shares, drawing questions about her independence and pay.
The board is now considering adding a new independent director to bring balance and oversight to Tesla’s top leadership.
