Tesla chair denies report about replacing Musk as CEO

The Wall Street Journal (WSJ) reported that as sales and profits tanked with Musk focusing on his work with the Donald Trump administration, "Tesla's board began mulling a replacement, it also met with Musk, telling him he had to spend more time with Tesla"

New Delhi: After a report claimed that electric car maker Tesla’s board is planning to replace Elon Musk as CEO, Robyn Denholm, Chairman of the board of directors at Tesla Motors, on Thursday denied the report, saying “this is absolutely false”.

The Wall Street Journal (WSJ) reported that as sales and profits tanked with Musk focusing on his work with the Donald Trump administration, “Tesla’s board began mulling a replacement, it also met with Musk, telling him he had to spend more time with Tesla”.

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In a post on X social media platform, Denholm said there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.

“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead,” Denholm posted. Musk also reacted, saying “WSJ is a discredit to journalism”.

According to the report, Tesla’s board beginning a search for a new chief executive and making demand on Musk would be a departure, as it |has traditionally been seen as extremely deferential to the billionaire|.

On Tesla Q1 earnings call last week, Musk confirmed he would soon spend most of his time at the EV major again. The news resulted in Tesla stock surging again. Tesla’s Q1 total revenue declined 9 per cent to $19.34 billion from $21.3 billion a year earlier. Automotive revenue dropped 20 per cent to $14 billion from $17.4 billion in the same period last year.

Net income also dropped 71 per cent to $409 million, from $1.39 billion a year ago.

Tesla said one reason for the decline was the need to update lines at its four vehicle factories to start making a refreshed version of its popular Model Y SUV. The electric car-maker refrained from promising growth this year and said it will “revisit our 2025 guidance in our Q2 update.”