Tesla’s board has firmly denied rumors that it’s looking to replace CEO Elon Musk. This comes after a Wall Street Journal (WSJ) report claimed the company had quietly reached out to executive search firms about a month ago, allegedly exploring potential successors.
Robyn Denholm, Tesla’s board chair, took to social media platform X (formerly Twitter) to dismiss the report, calling it “absolutely false.” She reinforced the board’s unwavering confidence in Musk’s leadership, saying he remains the right person to guide Tesla through its next phase of innovation and growth.
Musk also responded on X, calling the WSJ article “a deliberately false article,” continuing his long-standing criticism of media misinformation. Over the years, activist investors have accused Tesla’s board of being too lenient with Musk and lacking proper oversight. This latest rumor only added fuel to those concerns.
Despite these criticisms, Tesla remains at a pivotal moment. The company is shifting away from its original promise of producing a new affordable electric vehicle and instead focusing on futuristic technologies, such as autonomous robotaxis and humanoid robots. Musk has been vocal about reimagining Tesla as an AI and robotics powerhouse, rather than just an electric car company.
But all is not well. Tesla’s stock has taken a hit, and its EV sales have declined sharply in the U.S. and Europe. Part of this downturn is being attributed to Musk’s political stance and role within the Trump administration. As head of the Department of Government Efficiency, Musk has pushed for significant job cuts, a move that’s earned him sharp criticism and sparked protests, vandalism, and public backlash against Tesla.
Adding to investor unease, Musk’s time and focus have been split between Tesla and his political responsibilities. However, last week he announced plans to scale back his involvement in government work to dedicate more time to running Tesla—a move the board reportedly encouraged during a private meeting.
Interestingly, some investors believe Musk’s ties to the Trump administration could benefit Tesla, especially as federal regulators recently relaxed rules for testing autonomous vehicles, potentially giving Tesla an edge in the self-driving space.
Still, the company faces pressure. April saw Tesla’s sales plummet in France and Denmark—by 59% and 67%, respectively. To restore confidence, several board members, including Tesla co-founder JB Straubel, have been meeting with major shareholders to assure them of the company’s stability.
Denholm, a Musk appointee who has faced criticism over her compensation package, remains loyal. She even sold $33.7 million worth of Tesla stock in March, raising more eyebrows about her role on the board.
The Tesla board—currently made up of eight members, including Musk’s brother Kimbal Musk and James Murdoch—is reportedly considering adding a new independent director to strengthen its governance.
For now, Elon Musk’s position appears secure. But with falling sales, mounting political controversies, and investor scrutiny, Tesla’s future is anything but boring.
