The Wall Street Journal reported on May 1 that Tesla's board had initiated a search for a new CEO to replace Elon Musk, citing sources familiar with discussions that began in March. The report attributed the board's concerns to Musk's growing involvement as head of the Trump administration's newly created Department of Government Efficiency (DOGE), as well as Tesla's declining stock price and a 71% drop in first-quarter 2025 profit. The Journal also noted protests over Musk's political affiliations had added to board unease about succession planning, though it was unclear whether Musk — himself a board member — was aware of the search efforts.
Swift Denial from Tesla Chair
Tesla Chair Robyn Denholm immediately refuted the report on X, calling it "absolutely false" and reaffirming the board's full confidence in Musk's ability to execute the company's growth strategy, especially in autonomous vehicles and robotics. Musk himself responded on X, branding the WSJ piece a "DELIBERATELY FALSE ARTICLE" and an "EXTREMELY BAD BREACH OF ETHICS," accusing the outlet of failing to include the board's denial before publication. He shared Denholm's statement and added his own condemnation.
Market and Industry Implications
The controversy comes at a sensitive time for Tesla. The company reported a steep 71% profit decline in Q1 2025, with net income falling to around $1.1 billion, while vehicle deliveries grew at a slower pace amid rising competition. Musk's dual role as DOGE chief — a position overseeing government efficiency reforms — has drawn criticism from some investors who worry his attention is divided. Meanwhile, protests tied to his political stances (including support for Donald Trump) have occasionally disrupted Tesla showrooms and events.
Despite the headline-grabbing denial, Tesla's stock experienced only a modest wobble, suggesting many investors remain focused on product milestones like the upcoming Cybercab and Robotaxi services. Analysts note that Musk's multitasking across SpaceX, xAI, and Neuralink has long been a concern, but the board has historically stood firmly behind him. The WSJ report, even if flatly denied, reignites debate about corporate governance at high-profile founder-led companies.
Neither the Wall Street Journal nor its reporters have commented on Musk's allegations of ethical breach. This latest media feud underscores the ongoing tension between Musk and traditional news outlets, which he frequently accuses of bias and inaccuracy. For cryptocurrency observers, the coincidence of DOGE (the government efficiency department) sharing its name with Dogecoin (a token Musk often promotes) added a layer of irony to the story. However, Tesla's fundamental outlook hinges on execution in autonomous driving, energy storage, and cost reduction — areas where Musk remains the public face of the company.
As of press time, no formal board statement on CEO succession plans has been issued beyond Denholm's denial. The incident serves as a reminder of how quickly misinformation—or controverted reporting—can ripple through markets and social media, especially when involving high-profile figures like Elon Musk.