2025-05-01T09:43:20Z

Tesla has firmly denied allegations made by the Wall Street Journal regarding the initiation of a search for a new CEO to succeed Elon Musk. In a bold move, the company took to Musks social media platform, X, to label these claims as absolutely false. This response underscores the contentious atmosphere surrounding Musks leadership amid the companys ongoing struggles.

According to the report from the Wall Street Journal, Teslas board reportedly began exploring the possibility of finding a replacement for Musk about a month ago, engaging with several executive search firms. The search process had allegedly advanced to the point where one firm was selected to lead the effort. This speculation came at a time when the board communicated to Musk the necessity of devoting more of his attention to Teslas operations instead of his other ventures, particularly his public involvement with cryptocurrencies like Dogecoin (DOGE).

During a recent earnings call, Musk pledged to refocus his efforts on Tesla. He stated that starting in May, he would be allocating far more of his time to the electric vehicle company. This promise comes in the wake of Tesla facing significant challenges, including falling sales and declining revenue, as well as a noticeable brand crisis that has emerged since Musk's increasingly high-profile engagement with political figures like Donald Trump and his controversial push for reduced government expenditure.

In a quick rebuttal to the Wall Street Journals report, Robyn Denholm, the chair of Tesla's board, used the platform X to express the boards unwavering confidence in Musks leadership abilities. Denholm explicitly denied the claims of a CEO search, asserting that such intentions had been communicated to the media prior to the publication of the Journal's article. Musk echoed these sentiments, taking to Twitter to express his outrage, accusing the publication of committing an EXTREMELY BAD BREACH OF ETHICS and claimed that the Journal had received an unequivocal denial from Tesla before the report was released.

In a notable twist, the Wall Street Journal clarified that it had sought comment from Musk prior to publishing its article but did not receive a response. Furthermore, the publication later affirmed that it did not receive any statements from Tesla ahead of the article's release, raising questions about the communication dynamics between Tesla and media outlets.

Its worth noting that Tesla's board consists of eight members, including Musk, his brother Kimbal Musk, and media executive James Murdoch, son of Rupert Murdoch. This board has faced criticism for being perceived as filled with sycophants and overly loyal to Musk, particularly in light of last years negotiations that resulted in Musk receiving a record-breaking salary package.

As for Denholm, despite her expressed confidence in Musk's leadership, her recent actions have raised eyebrows. She recently liquidated over $32 million worth of Tesla shares, marking her third significant sale within just three months. This trend of selling shares raises questions about her long-term confidence in the companys trajectory and Musks leadership.