Tesla board chair Robyn Denholm has strongly denied a report from the Wall Street Journal that claimed the company was quietly looking for a new CEO to replace Elon Musk. The report said Tesla’s board contacted search firms a month ago to explore leadership changes, citing sources familiar with the matter.
Denholm took to social platform X to reject the claims, calling the story “absolutely false.” She added that the Tesla board fully supports Musk and is confident in his leadership to carry out the company’s growth strategy.
Elon Musk also responded on X, calling the WSJ piece a “deliberately false article.”
Despite the denials, the report has reignited investor concerns, especially as Musk continues to take on a role in the Trump administration, working on a plan to cut federal jobs. His political alignment has sparked protests and even vandalism at Tesla facilities in the U.S. and Europe.
Tesla Faces Critical Moment
Tesla is undergoing a major shift in strategy, moving away from affordable electric vehicles (EVs) and focusing instead on self-driving robotaxis and humanoid robots, positioning itself as a tech-driven AI company.
However, this change comes at a time when Tesla’s global sales are slipping. In April, sales in France fell by 59% and in Denmark by 67%, compared to last year. This slump has been linked to Musk’s political image and the aging EV lineup.
The Tesla board, according to the report, had met with Musk and encouraged him to publicly commit to spending more time at Tesla. Musk has since stated he plans to reduce his involvement in government duties and refocus on Tesla operations.
Board Under Scrutiny
Activist investors have long criticized Tesla’s board for being too close to Musk. Denholm, who was chosen by Musk and defended his high-value pay package, has faced questions about her independence.
She also came under fire in March after selling $33.7 million worth of Tesla stock, which some viewed as a potential conflict of interest.
The board, which includes Musk’s brother Kimbal Musk and James Murdoch, is reportedly looking to appoint an independent director to ease concerns among major investors.
Some directors, like co-founder JB Straubel, have been meeting with investors to provide assurance that the company remains stable and focused.
Meanwhile, regulators recently relaxed rules for testing autonomous vehicles, giving a boost to Tesla’s stock and Musk’s long-term vision for the company.
