Elon Musk Slams Report of Tesla Board Seeking New CEO
Company chair calls Wall Street Journal report “absolutely false”; Musk vows to focus more on Tesla.
Tesla Inc. has firmly rejected a Wall Street Journal report claiming that its board was seeking to replace CEO Elon Musk.
The denial, issued on Thursday, May 1, 2025, comes as investors express growing concerns over Musk’s divided attention between the electric vehicle company and his role in the Trump administration.
The controversy has sparked debates about Tesla’s leadership and Musk’s ability to juggle multiple high-profile responsibilities.
The Report and Tesla’s Swift Denial
On Wednesday, the Wall Street Journal reported that Tesla’s board had, about a month ago, contacted several executive search firms to explore finding a new CEO.
The report cited multiple unnamed sources and suggested that the move was prompted by concerns over Musk’s increasing involvement with President Donald Trump’s Department of Government Efficiency (DOGE).
It also noted that the board had urged Musk to spend more time at Tesla, though the current status of any search remained unclear.
Tesla’s response was immediate and unequivocal. Chair Robyn Denholm used the company’s official X account to dismiss the allegations.
“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,” Denholm wrote.
“This is absolutely false (and this was communicated to the media before the report was published). 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.”
Musk himself was equally forceful, accusing the Wall Street Journal of journalistic misconduct.
“It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!” he posted on X.
The Journal, in response, stood by its reporting, stating that Tesla was given an opportunity to comment before publication but did not.
Investor Concerns and Musk’s Divided Focus
The controversy unfolds against a backdrop of mounting investor unease.
Since January 2025, when President Trump began his second term, Musk has been a frequent presence at the White House, serving as a senior advisor and leading initiatives through DOGE.
This role has required significant time and attention, leading some investors to argue that Musk’s focus on Tesla has waned.
One prominent critic is Ross Gerber, an early Tesla investor. In a March 2025 interview with Sky News, Gerber called for Musk to step aside as CEO.
“The company’s reputation has just been destroyed by Elon Musk. It’s time for somebody to run Tesla. The business has been neglected for too long,” he said.
Gerber further argued, “There are too many important things Tesla is doing, so either Elon should come back to Tesla and be the CEO of Tesla and give up his other jobs or he should focus on the government and keep doing what he is doing but find a suitable CEO of Tesla.”
Gerber’s sentiments reflect broader concerns among some shareholders.
Tesla’s stock has experienced significant volatility in 2025, dropping 37% year-to-date, according to reports.
Declining sales have also been noted, with some attributing the downturn to Musk’s political activities and the resulting backlash.
Protests at Tesla stores, bumper stickers disassociating owners from Musk, and even reports of vandalism against Tesla vehicles have added to the company’s challenges.
Musk’s Response and Commitment to Tesla
In response to these concerns, Musk has signaled a shift in priorities. Last week, he announced plans to reduce his involvement with DOGE to focus more on Tesla.
“I will be allocating only 1-2 days per week to DOGE starting in May, and the rest of my time will be dedicated to Tesla,” he stated.
This move was welcomed by some analysts, including Dan Ives of Wedbush Securities, who said, “Musk did the right thing by recommitting as CEO. We expect him to remain in that role for at least the next five years. The board is not actively looking to replace him.”
However, there are indications that Musk may be grappling with his long-term role at Tesla.
Sources close to him suggest that Musk has privately expressed reluctance to continue as CEO, citing concerns that a replacement might not share his vision for autonomous vehicles and Tesla’s future as an AI and robotics company.
This sentiment may have been intensified by a recent court battle over his compensation package, which, if restored, could grant him control over 22.2% of the company through stock options.
Market Reaction and Brand Challenges
The Wall Street Journal’s report initially caused Tesla’s stock to dip, with shares falling as much as 3% in overnight trading on platforms like Robinhood.
However, following Tesla’s denial, shares stabilized, remaining flat in premarket trading on Thursday.
The quick recovery suggests that investors, while concerned, still place significant trust in Musk’s leadership and the board’s assurances.
Beyond stock performance, Tesla has faced broader reputational challenges.
The company’s brand has suffered since Musk became an outspoken ally of President Trump, with some customers actively distancing themselves from the brand.
Protests and vandalism, though condemned by most, underscore the polarized reactions to Musk’s political involvement.
These incidents have contributed to a reported decline in sales, further fueling investor calls for Musk to refocus on Tesla’s core business.
Tesla’s Strategic Priorities
Tesla is at a critical juncture, with ambitious plans to roll out driverless taxis and humanoid robots, signaling a pivot from traditional automaking to AI and robotics.
Musk’s vision for these initiatives has been a cornerstone of Tesla’s growth strategy, but it has also drawn scrutiny from activist investors who accuse the board of lacking independence and failing to rein in Musk’s broader ambitions.
The board’s unwavering support for Musk, as reiterated in Denholm’s statement, suggests that Tesla is committed to his leadership for the foreseeable future.
However, the recent controversy has highlighted the delicate balance Musk must maintain between his various roles and the expectations of Tesla’s stakeholders.
| Key Figures and Statements | Details |
|---|---|
| Robyn Denholm, Tesla Chair | Called the Wall Street Journal report “absolutely false,” affirming Musk’s role as CEO and the board’s confidence in his leadership. |
| Elon Musk, Tesla CEO | Accused the Wall Street Journal of unethical journalism, denying any CEO search and pledging to focus more on Tesla. |
| Ross Gerber, Investor | Criticized Musk for damaging Tesla’s reputation, calling for a new CEO or for Musk to refocus on Tesla. |
| Dan Ives, Wedbush Securities | Praised Musk’s recommitment to Tesla, expecting him to remain CEO for at least five years. |
Looking Ahead
As Tesla navigates this period of scrutiny, the focus will be on Musk’s ability to deliver on his promise to prioritize the company.
His reduced involvement with DOGE, coupled with Tesla’s public reaffirmation of his leadership, may help quell investor concerns in the short term.
However, the Wall Street Journal’s report, even if denied, has sparked a broader conversation about succession planning and the sustainability of Musk’s multifaceted career.
For now, Tesla’s stance is clear: Elon Musk remains its CEO, and the board is fully behind him.
Whether this resolves the underlying tensions or merely delays further debate remains to be seen.
As Tesla pushes forward with its ambitious goals, all eyes will be on Musk to steer the company through these turbulent times.
