The Tesla board and CEO Elon Musk have strongly pushed back against a Wall Street Journal report alleging that the board initiated a search for a new CEO to replace Musk. The report, published on April 30, 2025, cited sources familiar with discussions that began in March, citing Musk's divided attention due to his role in the Trump administration's Department of Government Efficiency (DOGE), as well as Tesla's declining stock price and a 71% drop in first-quarter profit. The story claimed that board members, concerned about protests over Musk's political affiliations and falling sales, contacted executive search firms to explore succession options, though it was unclear whether Musk himself was aware of the efforts.
WSJ Report Details
According to the Wall Street Journal, Tesla's board members grew increasingly worried about Musk's ability to focus on the electric vehicle maker as he took on a prominent role in the Trump administration. The report noted that Tesla's Q1 2025 earnings revealed a 71% profit decline, and the company faced protests in several markets due to Musk's political ties. The board reportedly reached out to at least one executive recruiting firm to discuss potential candidates, though no formal search had been launched. The Journal also highlighted that Tesla shares had fallen significantly in 2025, adding pressure on the board to address leadership concerns.
Swift Denial from the Board Chair
Tesla Chair Robyn Denholm wasted no time in refuting the story. In a post on X (formerly Twitter), she wrote: 'This article is absolutely false. The Tesla board has full confidence in Elon Musk's leadership and is fully supporting him in executing Tesla's growth plan, especially in autonomous vehicles and robotics.' Denholm, who has been Tesla's chair since 2018, directly contradicted the Journal's sources and reaffirmed the board's unity behind Musk. Her statement was shared by Musk himself, who added his own blistering critique.
Musk's Response and Ethics Accusation
Elon Musk responded on X by calling the WSJ article a 'DELIBERATELY FALSE ARTICLE' and an 'EXTREMELY BAD BREACH OF ETHICS.' He alleged that the outlet failed to include the board's denial before publication, accusing the newspaper of publishing a story with no regard for the truth. Musk's reaction mirrors his previous confrontations with the Wall Street Journal, including a 2024 lawsuit over a report that he used illegal drugs. Musk also pointed out that the board had not authorized any search and that he remains fully committed to Tesla's long-term vision.
Background and Market Implications
The controversy comes at a challenging time for Tesla. While the company continues to lead in electric vehicle sales globally, its automotive margins have been under pressure from increased competition and price cuts. Musk's involvement in politics—he serves as a high-profile adviser in the Trump administration's DOGE initiative—has drawn criticism and even boycotts from some consumers. However, Tesla's strategic pivot toward autonomy and robotics has kept investor interest alive. The board's swift and unified denial of the WSJ report is seen as an attempt to quell speculation and reassure the market that Musk's leadership is not in question.
As of press time, the Wall Street Journal has not issued a correction or further comment on the matter. The incident underscores the ongoing tension between Musk and traditional media, as well as the unique governance structure at Tesla, where Musk holds significant influence despite being only the largest individual shareholder.