According to the Wall Street Journal, Tesla’s board of directors has begun the search for a new CEO to replace Elon Musk. Underlying the decision would be declining profits, a drop in the stock price, and demands from board members that Musk devote more time to the company.
However, Tesla President Robyn Denholm denied the news. As reported by CNN, Denholm dismissed the Wall Street Journal report via a post on Tesla’s official X account, calling the claim “absolutely false” and stressing that the board has “full confidence in Musk’s ability to pursue the company’s ambitious growth plan.” Musk also said on X that the article contains false information.
The Journal highlighted the instability faced by Tesla in recent months. Due to Musk’s multiple commitments, including his involvement with the White House’s Department of Government Efficiency (DOGE) under the Trump administration, the CEO reportedly devoted less time to the company.
Meanwhile, Tesla’s (TSLA) stock has lost up to 45 percent of its value this year, before recording a partial recovery. In April, the company reported a sharp decline in sales and profits in the first quarter, with profits down 71 percent.
It is unclear whether Musk’s announced return to a more active role has changed the status of succession planning. According to the Journal, around the time the board reportedly began searching for a potential successor, members asked Musk to spend more time at the company. Musk, however, would not respond to these requests.
