Following a report suggesting Tesla was searching for a new CEO to replace Elon Musk, board chair Robyn Denholm has flatly denied the claims.
According to a report from the Wall Street Journal on Wednesday, citing unnamed “people familiar with the discussions,” board members had put out feelers to executive search firms about a month ago to sound out candidates for the top job.
Denholm didn’t mince words in her response. Taking to X, she declared the report “absolutely false”. She doubled down, adding that Tesla’s board remains “highly confident” in Musk’s ability “to continue executing on the exciting growth plan ahead”.
Elon Musk himself quickly backed up his chair’s stance. Also using X, he labelled the story a “deliberately false article”. Strong words, certainly, suggesting unified leadership pushing back against unwelcome speculation.
Of course, this forceful denial doesn’t happen in a vacuum. It comes at a time when Musk’s focus, and Tesla’s market position, are under intense scrutiny.
There’s been undeniable concern among investors about how Musk divides his time, particularly given his recent, high-profile stint with the Trump administration’s Department of Government Efficiency (DOGE).
Musk, who spearheaded controversial efforts to trim the federal workforce, announced last week that he plans to significantly scale back his government commitments to spend more time steering Tesla. That may have convinced the Tesla board to cease its alleged search for a new CEO.
That news likely came as a relief to some shareholders. Musk’s time away from the automotive mothership – and some, let’s say “controversial,” moments – coincided with a noticeable dip in sales for Tesla’s vehicles and even attacks on dealerships.
Musk’s increasingly vocal embrace of far-right political stances, particularly in Europe, triggered protests aimed at both Musk and the Tesla brand itself. Resale values of Tesla vehicles plummeted as customers attempted to distance themselves from the brand.
According to the Wall Street Journal’s report, the apparent friction led board members to meet with Musk directly, asking him to go on the record and publicly confirm he’d be dedicating more hours to Tesla.
What remains murky, the report suggests, is whether Musk – who also sits on the board – was even aware of any alleged succession planning chats, or how his renewed pledge to focus on Tesla might have impacted those supposed efforts.
There’s no doubt Tesla finds itself at a crossroads. As rivals catch up and new EV players emerge, competition is fiercer than ever. In response, Musk seems to be orchestrating a strategic pivot.
The long-promised affordable EV platform appears to be on the back burner, replaced by a vision centred on driverless ‘robotaxis’ and humanoid robots. Musk is increasingly framing Tesla not just as a car company, but as a powerhouse in AI and robotics. Some investors are clearly buying into this vision.
Amid all this noise, there are clear efforts to steady the ship. The WSJ noted that some Tesla directors, notably co-founder JB Straubel, have been meeting with major investors to reassure them that – despite the headlines – the company is fundamentally in capable hands.
While Tesla board members present a united front, firmly rejecting any notion of a search for a new CEO, the underlying tensions are hard to ignore. The speculation reflects real anxieties about Tesla’s path forward, its leadership stability, and its ability to navigate the challenges ahead.
For now, the board insists its faith in Musk is unshaken, but the market, investors, and industry watchers could take more convincing.
See also: Waymo could make your next car self-driving
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