The Wall Street Journal (WSJ) reported recently that Tesla’s board had seriously considered initiating a search for CEO Elon Musk’s successor, allegedly reaching out to multiple global executive search firms for this purpose.
According to anonymous sources cited by the WSJ, the board’s deliberation on Musk’s succession plan was prompted by recent investor concerns following a decline in stock prices. Notably, there was growing dissatisfaction with Musk’s increased focus on White House activities and political endeavors. The board reportedly urged Musk to refocus on Tesla’s management and publicly reaffirm his commitment.
Musk addressed these concerns during the first-quarter earnings call. However, the WSJ did not specify how far the board had progressed in any potential hiring process.
Hours after the report’s publication, Tesla vehemently denied the claims. Robyn Denholm, Tesla’s board chair, refuted the report on her social media, stating that the report claiming the board contacted search firms to replace the CEO is entirely baseless. Denholm added that Musk is Tesla’s CEO, and that the board is confident in the company’s future growth under his leadership.
Musk himself directly challenged the WSJ report on X, asserting that WSJ‘s intentional false reporting and failure to include the board’s explicit denial in their article constitutes a serious breach of journalistic ethics. It remains unclear whether the WSJ‘s report reflects genuine internal concerns at Tesla or if it’s a case of misinformation. Nonetheless, this incident underscores the ongoing scrutiny of the balance between Musk’s political activities and his Tesla leadership and the succession risks facing major tech companies.
