Tesla chair denies plans to look for new CEO to replace Musk

By Lala Hajiyeva
May 1, 2025 10:25 Updated 4h ago
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Reuters

Tesla chair Robyn Denholm called “absolutely false” a Wall Street Journal report that the board is hunting for a successor to CEO Elon Musk, insisting directors remain confident in his leadership.

Tesla Inc. moved quickly on Thursday to quash a Wall Street Journal report claiming the electric-vehicle maker has been discreetly scouting for a chief-executive successor to Elon Musk.

Board chair Robyn Denholm labeled the story “absolutely false” in a post on X, insisting the directors remain “highly confident in Elon’s ability to continue executing on the exciting growth plan ahead.” Musk echoed the sentiment on the same platform, calling the article “a deliberately false piece.”

The Journal, citing people familiar with the matter, reported that Tesla directors had contacted several executive-search firms about a month ago to explore potential CEO candidates. According to the paper, the board’s outreach stemmed from investor worries over sliding vehicle sales and Musk’s time-consuming political duties in Washington.

Musk recently told shareholders he would “significantly scale back” his role at the Trump administration’s Department of Government Efficiency (DOGE) and devote more attention to Tesla. While some investors say Musk’s government stint complements Tesla’s tech-heavy ambitions, others fear the dual obligations come at a delicate time for the carmaker.

Tesla is shifting from its long-promised low-cost EV project to a future focused on driverless “robotaxis” and humanoid robotics. Federal regulators last week loosened autonomous-vehicle testing rules, lifting Tesla’s stock and fueling optimism that political tailwinds could accelerate Musk’s AI-centric vision.

Yet vehicle deliveries have declined for two straight quarters, and the company’s aging lineup faces fierce competition from lower-priced models in China and Europe. Analysts say a credible road map—and consistent executive focus—will be vital as Tesla transitions from automaker to robotics powerhouse.

Activist investors have frequently criticized Tesla’s eight-member board for its perceived closeness to Musk. In addition to Denholm, the board includes co-founder JB Straubel, Musk’s brother Kimbal, and James Murdoch, son of media mogul Rupert Murdoch.

Denholm—appointed chair after Musk’s 2018 settlement with the U.S. Securities and Exchange Commission—has faced repeated questions about her stock-based compensation and her sale of roughly $33.7 million in Tesla shares earlier this year.

The board, according to the Journal, is searching for an additional independent director and has quietly met large shareholders to assure them Tesla’s governance is sound. A spokesperson declined to comment on those discussions, but stressed that “succession planning is routine at any large public company and is not tied to any current intent to replace Elon Musk.”

For now, Musk remains firmly at Tesla’s helm and has publicly recommitted to the company’s next phase of growth. Whether the board’s latest denial lays investor fears to rest—or stokes fresh demands for transparency—will become clearer at Tesla’s annual meeting, scheduled for June.

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