Tesla Denies CEO Succession Rumors Amid Investor Concerns and Musk’s Political Shift

Tesla Chair Robyn Denholm has denied a Wall Street Journal report claiming that board members had contacted executive search firms to find a replacement for CEO Elon Musk. Calling the report “absolutely false,” Denholm reaffirmed the board’s confidence in Musk’s leadership and vision for Tesla’s AI and robotics-driven future. Musk also slammed the report as a “deliberately false article” on X.

The WSJ report alleged that the board began CEO succession discussions about a month ago, amid growing investor concerns over Musk’s shifting focus. Musk has increasingly prioritized projects like driverless taxis and humanoid robots over Tesla’s core electric vehicle (EV) business, raising fears about the company’s strategic direction. His controversial role in the Trump administration, where he leads the Department of Government Efficiency, has also sparked backlash, including showroom vandalism and protests in the U.S. and Europe.

Tesla’s EV sales continue to decline, with April figures showing a 59% drop in France and 67% in Denmark year-over-year. Musk has pledged to reduce time spent on political duties and recommit to Tesla, following board pressure. Some directors, including JB Straubel, have been meeting major shareholders to assure them of Tesla’s stability.

Despite Denholm’s defense of Musk and her own compensation, critics argue her close ties to the CEO may compromise board independence. Meanwhile, Tesla’s board—featuring figures like Musk’s brother Kimbal and James Murdoch—is reportedly looking to appoint a new independent director.

While Tesla stock saw slight gains in Thursday’s premarket session, much of the company’s valuation hinges on Musk’s future role and the success of its pivot to autonomous tech, bolstered by recent regulatory easing in the U.S. for self-driving vehicle testing.