Tesla has denied reports suggesting it contacted recruitment firms to begin searching for a replacement for Elon Musk as CEO. On Wednesday, the Wall Street Journal claimed that the electric car company’s board had started looking for Musk’s successor last month. The report suggested that the board’s decision stemmed from frustration with Musk’s focus on his role in US President Donald Trump’s administration and the company’s declining share price.
In a statement released on Thursday, Tesla called the report “absolutely false.” Musk himself weighed in on the matter via his social media platform X, calling the story “a discredit to journalism.”
Tesla’s chair, Robyn Denholm, also addressed the claim on X, clarifying that the media report was based on misinformation. Denholm stated, “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 also noted that Tesla had communicated the truth to the media before the report was published.
The report, citing unnamed sources, claimed that Musk had been told by the board to devote more time to Tesla and publicly acknowledge this. The Wall Street Journal further indicated that Musk did not push back against this suggestion.
In response, Musk reiterated his commitment to Tesla, saying on a conference call last week that he would be dedicating “far more of my time to Tesla” and would significantly reduce his involvement in his government role. On Thursday, Musk criticized the Wall Street Journal for publishing the article, calling it “an EXTREMELY BAD BREACH OF ETHICS.” He later reposted a comment from a user on X who described the paper as “trash.”
Controversial Leadership and Boycotts
Musk’s leadership of the newly formed Department for Government Efficiency (Doge) under President Trump has sparked widespread criticism. Many Tesla customers have expressed dissatisfaction with Musk’s political actions, which they feel are not aligned with their values. Some have even pledged to boycott Tesla or protested its dealerships, leading to some incidents of criminal damage.
At the same time, investors and analysts have pointed to Musk’s reputation and his juggling of multiple high-profile roles as a contributing factor to Tesla’s financial struggles. Despite this, Musk has made light of his busy schedule, joking about wearing “a lot of hats.”
Musk’s involvement in Doge is further complicated by his role as the head of SpaceX, and his temporary government position limits him to 130 working days per year. Although it is unclear when Musk will step down completely, President Trump previously stated that he would keep Musk as long as possible.
In a recent video posted to X, Musk humorously addressed the notion that he was doing too many jobs, wearing two baseball hats at the same time. He also remarked on his role in examining the spending of the US central bank, calling for more scrutiny over its expenditures, including renovations to its headquarters.
What The Author Thinks
While the question of whether Tesla should replace Musk as CEO continues to surface, the focus on leadership change distracts from more pressing issues the company faces, such as its financial health and product development. Instead of debating Musk’s future at Tesla, stakeholders should focus on how the company can innovate and stabilize in the face of growing competition and economic pressures. Leadership transitions, though important, are only one piece of the puzzle when it comes to long-term growth.
Featured image credit: Heute
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