Elon Musk and Tesla’s board have firmly denied reports suggesting the company is seeking a new CEO to replace Musk. This comes amid declining sales and investor concerns over Musk’s involvement in the Trump administration.
Denials from Musk and Tesla’s Board
A Wall Street Journal article claimed that Tesla’s board had initiated a search for Musk’s successor, citing concerns over his focus on the Department of Government Efficiency (DOGE).
However, Tesla Chair Robyn Denholm labeled the report as “absolutely false,” stating the board’s strong confidence in Musk’s leadership.
Musk echoed this sentiment on X, calling the article a “deliberately false” piece and criticizing the publication for not including Tesla’s denial prior to release.
Tesla Investor Concerns and Market Performance
Tesla’s first-quarter profits dropped by 71%, and its stock has fallen 30% this year. Investors have expressed concerns over Musk’s political engagements, particularly his role in DOGE, which some believe distracts from his responsibilities at Tesla.
In response, Musk announced plans to reduce his time with DOGE and refocus on Tesla operations.
Political Involvement and Public Perception
Musk’s association with the Trump administration and support for far-right political parties in Europe have led to protests and a decline in Tesla’s sales in key markets. In France and Denmark, sales dropped by 59% and 67%, respectively.
Tesla’s Future Outlook
Despite the controversies, Tesla’s board maintains its support for Musk.
Analysts suggest that while Musk’s political activities have impacted Tesla’s brand, his commitment to refocusing on the company could stabilize its performance.
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