Tesla Dismisses CEO Replacement Rumors Amid Investor Concerns

Tesla shares held steady in premarket trading Thursday after the company publicly denied a report from The Wall Street Journal claiming its board was actively seeking a replacement for CEO Elon Musk. The report, citing unnamed sources, alleged that board members had approached multiple executive search firms to launch a formal CEO recruitment process. The news initially triggered a 3% dip in Tesla’s stock during overnight trading on the Robinhood platform before the decline leveled off.

In response, Tesla Chair Robyn Denholm firmly refuted the claims on social media platform X, calling the article “absolutely false.” She clarified that the company had not contacted any recruitment firms and reaffirmed Elon Musk’s role as CEO. Denholm emphasized the board’s continued confidence in Musk’s ability to steer Tesla’s ambitious growth agenda.

The rumor surfaced during a challenging financial period for Tesla, as the electric vehicle manufacturer recently posted weaker-than-expected quarterly earnings. Both revenue and profit fell short of Wall Street estimates, raising concerns among analysts and shareholders alike about Tesla’s near-term performance and market stability.

Adding to the tension is Musk’s growing political involvement, which he acknowledged might be contributing to negative investor sentiment. He recently stated that his ties to the Trump administration could be a factor in Tesla’s declining stock value—a rare admission that personal ventures might be spilling over into shareholder confidence.

During a recent Tesla earnings call, Musk also revealed that starting in May, he plans to devote only “a day or two per week” to overseeing a newly announced government project dubbed the Department of Government Efficiency. While the initiative may align with Musk’s broader interests, it has fueled further questions about his focus on Tesla’s operations during a critical time.

Despite these headwinds, Tesla maintains its stance that Elon Musk remains firmly in control and is the best person to lead the company forward. The leadership insists that the false report will not derail their momentum as they continue to pursue innovation and long-term growth in the competitive EV market.