Tesla Chair Denies the Firm Thought of Changing Elon Musk As CEO

Tesla’s board chair has denied that the corporate ever thought of changing Elon Musk as CEO amid a inventory worth stoop and international model disaster sparked by his work at DOGE.

Robyn Denholm mentioned on Wednesday that the board had excessive confidence within the billionaire’s management, after The Wall Avenue Journal reported that board members had looked for a brand new CEO.

The Journal reported that as Tesla’s inventory worth plunged in March and April amid collapsing gross sales and public blowback over Musk’s work at DOGE, unnamed Tesla board members reached out to recruitment companies to work on a course of to pick out Tesla’s subsequent CEO.

Board members had additionally advised Musk he wanted to spend extra time at Tesla and reaffirm his dedication to the corporate publicly, the Journal reported, citing individuals conversant in the discussions.

In Tesla’s first quarter earnings final week, Musk introduced he would step again from his White Home function in Might and allocate extra time to main Tesla, with the corporate’s inventory worth surging in response.

“Now, we’re getting extra of a rhythm, and so the period of time that it’s a necessity for me to spend right here is far much less, and I can return to primarily working my corporations — which they want me,” Musk mentioned in an interview with reporters within the White Home on Wednesday night, earlier than the Journal’s story was printed.

In a submit on Tesla’s X account on Wednesday, chairwoman Robyn Denholm known as the Journal’s report “completely false.”

“The CEO of Tesla is Elon Musk and the Board is extremely assured in his capability to proceed executing on the thrilling development plan forward,” mentioned Denholm. Musk additionally denied the article in a submit on X.

It comes amid a rocky begin to the yr for Tesla.

The automaker has been hit by a world wave of protests over Musk’s function in reducing the federal workforce, which has additionally turned its autos into targets for vandalism and pushed some homeowners to promote up.

The model disaster has fuelled a gross sales collapse, with Tesla reporting its lowest quarterly gross sales since 2022 final month.

The corporate can be going through rising competitors within the EV area, particularly from China, with the Warren Buffett-backed BYD besting Tesla in gross sales and income up to now this yr.

Tesla’s inventory worth, which surged after the US election, has plunged round 30% because the begin of the yr, inflicting traders to ring the alarm about how a lot consideration Musk is paying to Tesla.

In a Wednesday notice, Wedbush Securities analyst and Tesla bull Dan Ives mentioned Musk did the proper factor in stepping again from his DOGE function and that Musk would doubtless keep on as CEO for at the very least one other 5 years.

“This example with Musk at DOGE was reaching a breaking level, however we imagine that cooler heads have now prevailed,” mentioned Ives, describing the reported seek for potential replacements as a “recreation of high-stakes poker” between Tesla’s board and Musk.

Musk and Tesla didn’t reply to a request for remark despatched exterior regular working hours.