Tesla has denied reports that the board tried to replace Elon Musk as chief executive amid backlash against his right-wing politics and declining car sales.
Robin Denholm, chairman of the electric vehicle manufacturer’s board of directors, said in a statement on X’s Tesla’s social media accounts:
“This is absolutely wrong (and this was communicated to the media before the report was released). Tesla’s CEO is Elon Musk, and the board is extremely confident in its ability to continue to execute with its exciting growth plans ahead.”
Following the Wall Street Journal story released Wednesday, “board members” allegedly contacted the Headhunter and recruited successors about a month ago.
The reported move has helped Donald Trump cut federal spending as de facto head of the “Doctors of Government Efficiency” (DOGE) as tensions have risen at Tesla and tensions over Musk’s benefits and criticism to spend much of his time in Washington.
The report unclear whether these members were acting collectively on behalf of the board or whether they would take steps to find a new CEO. The Tesla Committee consists of eight people, including Elon Musk himself, his brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch.
Before the German national election in February, Tesla was hit with widespread backlash against Musk’s recent political activity, not just his Doge work, but his Doge work. Electric vehicle sales have fallen in some of its biggest markets, with political protests in some of its showrooms.
Last week, the company reported a 71% decline in profits in the first quarter of this year, compared to $139 billion for the same period in 2024.
Musk told investors that he will “allocate much more of my time to Tesla” from May. He is scheduled to leave his government role on May 30, according to the strict 130-day cap for his services as a special government employee.
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There have been long been concerns about the demands of the Musk era. Like Tesla, he oversees four other companies, including space exploration company SpaceX and the social media platform X, previously known as Twitter.
Musk denounced the Wall Street Journal report on X on Thursday. He writes: “It’s a very bad ethical violation that @WSJ intentionally publishes false articles and fails to include in advance a clear denial from Tesla’s board of directors!”