Tesla has refuted claims that its board sought to replace Elon Musk as CEO in response to backlash over his right-wing views and decreasing vehicle sales.
Robin Denholm, chair of the electric vehicle manufacturer’s board, stated on Tesla’s social media account on X:
“This is completely inaccurate (and this was conveyed to the media prior to the release of the report). Elon Musk is Tesla’s CEO, and the board has full confidence in its ability to continue executing our ambitious growth plans.”
Tesla CEO Elon Musk. Photo: Evelyn Hockstein/Reuters
Following a report from the Wall Street Journal on Wednesday, “board members” are said to have contacted a headhunter to explore potential successors about a month ago.
This reported action has allowed Donald Trump to influence federal spending as the informal head of the “Doctors of Government Efficiency” (DOGE), amidst rising tensions at Tesla due to Musk’s extensive involvement in Washington.
It remains unclear whether these board members acted collectively or individually in seeking to identify a new CEO. The Tesla Committee consists of eight members, including Elon Musk, his brother Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch.
Tesla has faced significant backlash over Musk’s recent political activities, including his public support for actions against Germany’s far-right Alternative for Germany (AfD) party ahead of the national elections in February. Sales of electric vehicles have dropped in some major markets, accompanied by political protests at various showrooms.
Recently, the company reported a 71% decrease in profits for the first quarter of this year, down from $139 billion in the same period of 2024.
Musk informed investors that he would “dedicate significantly more time to Tesla” beginning in May. He is expected to conclude his role at DOGE by May 30, adhering to the 130-day limit imposed on his service as a special government employee.
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Concerns have persisted regarding the demands of the Musk era. In addition to Tesla, he manages four other companies, including the space exploration firm SpaceX and the social media platform X, formerly Twitter.
On Thursday, Musk criticized the Wall Street Journal report on X, stating: “It is an ethical violation that @WSJ deliberately publishes false reports and fails to present a clear denial from Tesla’s board beforehand!”
Source: www.theguardian.com
