Tesla’s board is not looking for a new CEO, according to the company’s chair, who reaffirms support for Elon Musk’s leadership.
Tesla chair Robyn Denholm on Thursday flatly refuted a Wall Street Journal story that the company’s board has begun looking for a new CEO to succeed Elon Musk.
The Journal reported on Wednesday that Tesla board members contacted numerous executive search firms about a month ago to look into prospective Musk replacements, citing sources.
In a post on X, Denholm termed the allegation “absolutely false” and stated that the board was still “highly confident” in Musk’s leadership and ability to carry out Tesla’s aggressive expansion ambitions. Musk also addressed X, calling the story a “deliberately false” report.
Musk recently stated that he intends to considerably curtail his involvement with the Trump administration in order to focus more on Tesla. His work as head of the Department of Government Efficiency (DOGE), where he has spearheaded attempts to reduce federal jobs, has sparked debate and investor worry, especially as Tesla’s sales decline and competition grows.
Musk’s rising support for far-right movements in Europe has triggered protests and vandalism against Tesla showrooms and charging stations in both the United States and Europe.
According to the Journal, some board members met privately with Musk and asked him to publicly confirm his intention to devote more time to Tesla. However, it is unknown whether Musk, who is a member of the board, was aware of any succession conversations or whether his recent vow influenced any future plans.
Tesla is at a watershed moment, transitioning from its initial promise of providing affordable electric automobiles to a broader focus on driverless taxis and humanoid robots. Musk has positioned Tesla’s future as an AI and robotics firm, which is key to its price. The stock soared last week after US officials relaxed testing restrictions for self-driving vehicles.
To reassure investors, some directors, including Tesla co-founder JB Straubel, reportedly met with important shareholders to highlight the company’s stability.
Activist investors have long criticized Tesla’s board, alleging a lack of independence and a failure to effectively manage Musk. Denholm, nominated by Musk and a supporter of his controversial pay package, has faced criticism for her own income and worries about her ability to provide impartial oversight. A spokesman for Denholm has defended her remuneration as reasonable, and Denholm has denied the charges.
Denholm sold approximately $33.7 million in Tesla shares in March, according to a regulatory filing. The eight-member board, which includes Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch, is apparently searching for an independent director.