Tesla has strongly denied reports suggesting that it has contacted headhunting firms to search for a replacement for CEO Elon Musk. The claims, first reported by The Wall Street Journal, suggested that Tesla's board had begun looking for a successor due to concerns about Musk's focus on his role in U.S. President Donald Trump's administration and the company's declining share price.
Tesla issued a statement on Thursday calling the report "absolutely false." In response, Musk criticized the Wall Street Journal, dismissing the article as "a discredit to journalism" on his social media platform, X (formerly Twitter). Tesla Chair Robyn Denholm also took to X to clarify the situation, stating that the report was "absolutely false" and asserting that the board had communicated this denial before the article was published. She reaffirmed that Elon Musk remains Tesla's CEO, and the board has full confidence in his ability to lead the company’s future growth.
The report from The Wall Street Journal cited unnamed sources and claimed that the Tesla board had told Musk he needed to dedicate more time to Tesla and publicly announce his focus on the company. According to the report, Musk did not object to the suggestion.
In a statement from his own social media platform, Musk expressed outrage over the article, labeling it as an “EXTREMELY BAD BREACH OF ETHICS” for publishing a “deliberately false article” without seeking a clear denial from the Tesla board beforehand. Musk later shared a comment from a user calling the Wall Street Journal “trash.”
Tesla's Leadership Under Scrutiny
Musk’s leadership of Tesla has come under increasing scrutiny due to his controversial political involvement, particularly his role as head of the Department for Government Efficiency (Doge), a newly created advisory body for President Trump. Some Tesla customers have expressed dissatisfaction with the company, citing Musk's political views and actions while in this role, resulting in boycotts and protests against the company.
Tesla’s financial struggles have also been attributed, in part, to Musk’s extensive involvement in multiple high-level roles. Analysts have pointed to concerns over Musk's divided attention between Tesla, SpaceX, and his government-related responsibilities as contributing to the company’s challenges.
Musk, known for juggling multiple roles, has made light of his busy schedule. In a video posted on X, he joked about wearing two baseball caps during a White House meeting, referencing the "many hats" he wears in his various positions. He also commented on his role within Doge, calling for an audit of the U.S. Federal Reserve's spending, particularly on the cost of renovating its headquarters.
