Tesla has strongly denied recent reports suggesting its board is actively seeking a replacement for CEO Elon Musk, calling the claims “absolutely false.”
The initial report, citing unnamed sources, claimed that Tesla’s board had reached out to executive search firms to begin the process of finding a new CEO. The story triggered a brief market reaction, with Tesla shares falling as much as 3% during overnight trading on Robinhood before stabilizing in Thursday’s premarket session.
In response, Tesla Chair Robyn Denholm publicly dismissed the claims on social media platform X (formerly Twitter).
“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search,” Denholm wrote.
“This is absolutely false (and this was communicated to the media before the report was published). 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.”
The denial comes at a time of financial pressure for the electric vehicle company. Tesla’s Q1 2025 earnings revealed a 9% drop in year-over-year revenue, coming in at $19.34 billion—falling short of the $21.11 billion expected by analysts, according to LSEG data.
The company’s core automotive revenue took a significant hit, declining 20% to $14 billion. Tesla attributed the dip to production line upgrades for the refreshed Model Y, along with lower average selling prices and increased discounts. Net income plunged 71% to $409 million (12 cents per share), compared to $1.39 billion (41 cents per share) a year earlier.
Adding to investor concerns, Elon Musk recently confirmed that his upcoming involvement with the U.S. Department of Government Efficiency, beginning in May, would reduce his time at Tesla to just one or two days per week.
This announcement, along with disappointing financial results and concerns about Musk’s divided focus, has contributed to a sharp decline in Tesla’s stock—down over 30% since the start of 2025.
Despite this, the board’s public show of support for Musk appears aimed at reassuring shareholders and calming speculation about his leadership future at the company.
Saharareporters
