Tesla Board Denies Seeking New CEO to Replace Elon Musk, Calls WSJ Report "Absolutely False"

Tesla has swiftly refuted a recent Wall Street Journal (WSJ) report claiming that the company's board had begun a search for a new CEO to replace Elon Musk. The report, which was published about a month ago, alleged that Tesla had reached out to several executive search firms and even narrowed its choices to one firm to lead the hunt. The board reportedly asked Musk to dedicate more time to Tesla and less to his other ventures, particularly Dogecoin. Musk addressed this publicly during an earnings call last week, promising to "allocate far more" of his time to Tesla starting from May. However, Tesla's board chair, Robyn Denholm, issued a statement on Elon Musk’s social media platform X, labeling the WSJ report as "absolutely false." Denholm stated that the board has "high confidence" in Musk’s leadership and explicitly denied initiating any CEO search. She also mentioned that the board had communicated this denial to the media prior to the publication of the report. The WSJ has not yet updated its article or responded to Denholm’s statement, though it noted that it had reached out to Musk for comment and received no response. Musk himself later took to Twitter, accusing the WSJ of an “EXTREMELY BAD BREACH OF ETHICS” and asserting that the paper had been sent an “unequivocal denial beforehand.” His tweet further emphasized Tesla’s stance against the report. Despite the board’s purported confidence in Musk, Denholm recently sold over $32 million worth of Tesla shares, marking her third significant sale in as many months. These transactions have raised eyebrows and fueled speculation among investors and analysts. Critics argue that the sales might indicate a lack of trust in Tesla’s future under Musk, while supporters maintain that they could simply be part of Denholm’s personal financial strategy. The controversy comes at a critical time for Tesla, which has faced challenges including slumping sales, declining revenue, and a brand crisis. Musk’s increased involvement in political matters, particularly his efforts to influence government spending cuts alongside Donald Trump, has contributed to these difficulties. The broader impact of Musk’s activities on Tesla and his other companies remains a topic of debate, with some suggesting that his multifaceted endeavors could potentially benefit all his business interests. In the face of these reports and share sales, Tesla and its stakeholders are closely watching how Musk’s upcoming changes in time allocation will affect the company’s performance and public perception. The board’s strong denial and Denholm’s actions present a paradox that will likely continue to draw scrutiny and speculation from the media and the investment community.