Was Tesla’s Board Considering the Replacement of Elon Musk as CEO?

A new article from The Wall Street Journal has ignited debate by asserting that Tesla’s board of directors contemplated replacing Elon Musk as CEO. The piece indicates that certain board members were dissatisfied with Musk’s seeming distraction from Tesla, especially after he assumed a position as a special government employee during the Trump administration and engaged in a controversial cost-reduction project referred to as DOGE.

The article suggests that these worries prompted the board to consult executive search firms to initiate the search for a new CEO. It also claimed that the board aimed to appoint an independent director to the organization.

Nonetheless, Musk has vehemently refuted the validity of the report. In a late-night message on X (formerly Twitter), he labeled the article a “deliberately false” item and charged The Wall Street Journal with a “serious breach of ethics” for issuing it without including what he argues was a clear denial from Tesla’s board.

Musk also disseminated an official declaration from Tesla chair Robyn Denholm, who characterized the report as “absolutely false.” Denholm highlighted that the board had not reached out to any recruitment firms and reaffirmed the board’s trust in Musk’s leadership.

“Earlier today, there was a media report incorrectly stating that the Tesla Board had contacted recruitment firms to commence a CEO search at the company,” Denholm remarked. “This is absolutely false (and this was conveyed to the media prior to the report being published). The CEO of Tesla is Elon Musk, and the Board has immense confidence in his capacity to continue executing on the exciting growth plan ahead.”

This isn’t the first instance in which concerns have been raised regarding Musk’s dedication to Tesla. In March, a long-time investor publicly urged Musk to either withdraw from his governmental position or resign as the CEO of Tesla. After a disappointing earnings report in April, Musk declared he would reduce his involvement with DOGE and allocate “far more” time to Tesla.

Tesla has encountered significant hurdles in recent months. The company reported a 71% decline in profits in its latest quarter, attributing much of the drop to global boycotts and protests tied to Musk’s political connections and his work with DOGE. Consequently, Tesla sales have decreased internationally, and numerous owners have allegedly considered trading in or selling their vehicles because of the company’s association with Musk.

Despite the upheaval, Tesla’s board continues to publicly back Musk, reiterating their faith in his leadership and vision for the company’s future.