Tesla's Board Denies CEO Succession Planning Amid Sales Struggles
Tesla’s board refutes claims they sought CEO Elon Musk's successor while sales and profits decline.
Tesla denies trying to replace Elon Musk as CEO
ARS Technica
Tesla chairwoman denies report that the board wanted to replace Musk
Washington Examiner
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Overview
Tesla's board has denied reports about seeking a successor for CEO Elon Musk, asserting confidence in his leadership amid declining sales and profits. An article claimed that the board had approached executive search firms, which Tesla Chair Robyn Denholm labeled as "absolutely false." Tensions are reportedly high due to Musk's government work and a significant drop in market value from $1.5 trillion to around $900 billion. Despite these challenges, Musk stated he would dedicate more time to Tesla starting in May, after acknowledging concerns regarding his divided attention.
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FAQ
The Wall Street Journal reported Tesla's board had contacted executive search firms to identify potential CEO candidates, citing concerns over Musk's political engagements and Tesla's declining sales and market value. This prompted an official denial.
Musk's leadership of the Department of Government Efficiency (DOGE) under former President Trump and his vocal political alignment triggered consumer backlash, alienating customers and damaging Tesla's brand.
Musk called the WSJ report 'an EXTREMELY BAD BREACH OF ETHICS' and accused the publication of running a 'DELIBERATELY FALSE ARTICLE,' citing prior board denials.
Chair Robyn Denholm sold $150 million worth of Tesla shares since December 2024, including a large sale earlier this week, though this hasn't been explicitly linked to succession planning.
Musk pledged last week to step back from his government role by May 2025 and refocus on Tesla, which caused a stock price surge.
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