Tesla rejects claims of CEO search, supports Musk's continued role
What's the story
Tesla has denied allegations that its board is contemplating replacing Elon Musk as CEO.
The denial comes after a report by The Wall Street Journal indicated that "board members" had approached recruitment firms about a month ago to seek Musk's successor.
Robyn Denholm, chair of Tesla's board, took to X to set the record straight and reiterate faith in Musk's leadership.
Clarification
Denholm's statement on CEO speculation
Denholm said, "Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company."
She added that this is "absolutely false (and this was communicated to the media before the report was published)."
Denholm also said, "The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead."
Challenges
Tensions rise amid declining profits
The speculation of Musk's possible replacement comes amid increasing tensions at Tesla over falling profits and criticism of Musk's political involvement.
He's been spending a lot of time in Washington, helping Donald Trump with federal spending cuts as the head of the Department of Government Efficiency (DOGE).
It's not clear in the report if all board members were involved in this recruitment initiative or just a few acting independently.
Controversy
Musk's political involvement sparks backlash
Musk's political moves have drawn a lot of backlash for Tesla, including his support for the far-right Alternative for Germany (AfD) party ahead of German national elections in February.
This has led to a decline in electric car sales in some key markets and political protests at some of its showrooms.
Last week, Tesla reported a 71% drop in profits for Q1 2025 to $409 million, compared to $1.39 billion during the same period last year.
Twitter Post
Take a look at the official post
Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.
— Tesla (@Tesla) May 1, 2025
This is absolutely false (and this wascommunicated to the media before the report waspublished). is…
The CEO of Tesla
Future plans
Commitment to Tesla amid challenges
Musk assured investors that he would be "allocating far more of my time to Tesla" starting this month.
He will step down from his role in DOGE on May 30, owing to a strict 130-day cap on his service as a special government employee.
Despite overseeing other companies, including SpaceX and X, Musk remains committed to leading Tesla through these challenging times.