The chairman of Tesla’s board has refuted claims regarding his search for a successor to CEO Elon Musk, who has been preoccupied with President Trump while the company’s sales and profits have notably declined.
Robin Denholm, who has chaired the board for over six years, stated on X that the Wall Street Journal report was “completely unfounded.”
“Elon Musk is Tesla’s CEO, and the board is highly confident in our ability to pursue our exciting growth initiatives,” Denholm announced on a Tesla account linked to Musk’s social media platform, X.
The Wall Street Journal reported late Wednesday that approximately a month ago, the Tesla board reached out to an executive search firm for assistance in finding a potential alternative to Musk, citing “individuals with relevant expertise.”
Following a 71% drop in quarterly profit reported last week, Musk has committed to dedicating more time to Tesla and less to Washington. He mentioned he spends one or two days weekly on administrative tasks.
Musk’s absence from Tesla, as he focuses on efforts to reduce government spending under Trump, has stirred frustration among investors. His association with right-wing movements in Europe has sparked protests at Tesla dealerships and contributed to decreasing sales, as electric vehicle buyers generally lean more liberal or centrist.
Recent reports indicated that Tesla’s revenue fell 9% in the first quarter of this year, amounting to $19.3 billion.
Automakers are losing market share in the US, China, and Europe, as competitors like BYD, General Motors, Volkswagen, and others roll out numerous electric models. Analysts have criticized Tesla for not broadening its offerings beyond the two main vehicles.
The Model Y SUVs and Model 3 sedans account for a substantial portion of Tesla’s sales. Musk indicated that Tesla’s latest vehicle, the CyberTruck, is not yet available for sale.
Source: www.nytimes.com
