Tesla has hit back at claims that its board is scouting for a new chief executive to replace Elon Musk, following reports that the company was concerned about Musk’s growing political role in Washington.
A Wall Street Journal article, citing anonymous sources, suggested Tesla had begun a discreet search for a new CEO and had even contacted recruitment firms. These claims were quickly dismissed by Tesla chair Robyn Denholm in a post on X, the social media platform owned by Musk. Denholm said the report was “absolutely false”.
“The CEO of Tesla is Elon Musk and the board is highly confident in his ability to continue executing on the exciting growth plan ahead,” she wrote, adding that the company had made this clear to journalists prior to the story’s publication.
The Journal report had claimed Tesla’s leadership was increasingly frustrated with the amount of time Musk was spending in Washington, where he has been advising former US president Donald Trump and chairing the so-called Department of Government Efficiency – or DOGE.
Concerns about Musk’s divided commitments come as Tesla faces a rocky financial period. The electric carmaker has been dealing with slumping vehicle demand, a 71 per cent drop in quarterly profits, and a 30 per cent fall in its share price so far this year. Shareholders and analysts have raised questions about Musk’s focus on the firm, given his run of outside ventures and recent political entanglements.
In the past week, the White House confirmed Musk would be stepping back from public service in the near future. Karoline Leavitt, the administration’s press secretary, posted on social media: “Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
Musk also told followers he would be dedicating “far more” of his time to Tesla going forward. In addition to leading Tesla, he heads rocket firm SpaceX, neurotechnology outfit Neuralink, and AI company xAI.
Despite Trump still referring to Musk as a “patriot” and hailing his public sector work, discontent has reportedly been brewing within Trump’s inner circle. According to sources cited in US media, Musk’s unpredictable public statements, unsanctioned policy announcements on X, and a failed $5m campaign to influence a state judicial race in Wisconsin have rattled some allies as the presidential campaign ramps up.
