- By Ajeet Kumar
- Thu, 01 May 2025 11:13 AM (IST)
- Source:JND
Elon Musk's Tesla has rejected media reports claiming the electionic vehicle' giant is actively looking for its successor amid dwindling car sales. Earlier today, news agency Reuters citing the Wall Street Journal report said Tesla board members reached out about a month ago to several executive search firms to find a successor to Musk. The report claimed that current status of the board's push, which, according to the report, was sparked by Musk's heavy involvement with the Trump administration, could not be determined. Musk last week said he would cut back significantly on the time he devotes to the Trump administration and spend more time running Tesla.
Tesla rejects media reports
Reacting to the reports, Tesla spokesperson Robyn Denholm has published a detailed statement on social media claiming it a completely "fake news". It said that Musk and the Board are highly confident in his ability to continue executing the exciting growth plan ahead.
"Earlier today, 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)," it as per the statement.
Later, reacting to Tesla's statement, Musk slammed the media report and said WSJ deliberately published a false article. "It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!" he said.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
— Elon Musk (@elonmusk) May 1, 2025
Musk giving maximum time to Trump administration
Musk's work at his Department of Government Efficiency (DOGE), where he has led efforts to cut federal jobs, has been one of the most controversial aspects of the Trump presidency, and his time away from Tesla has been an additional concern for investors as sales of its aging EV lineup have been on the decline. His embrace of far-right politics in Europe has also led to protests against Musk and the company as well as vandalism at its showrooms and charging stations across the US and Europe.
The board members met Musk and asked him to acknowledge publicly that he would spend more time at Tesla, the report said. But it was unclear if Musk - also a member of the board - was aware of succession planning, or if his pledge to spend more time at Tesla has affected the efforts, the report added.
Tesla car sales down
Tesla is at a crucial juncture. Amid rising competition globally, Musk has pivoted from his promise to make a new affordable EV platform to rolling out driverless taxis and humanoid robots, highlighting Tesla's future as an AI and robotics company instead of an automaker.Much of the company's valuation is based on that vision, and some investors believe Trump will help further it.
Last week, federal regulators eased rules for testing autonomous vehicles, boosting Tesla's stock. Some Tesla directors, including co-founder JB Straubel, have been meeting with major investors to reassure them the company is in good hands, the WSJ said.
Hunt for Tesla's independent director
Activist investors have long accused Tesla's board of lacking independence and failing to rein in Musk. Board chair Robyn Denholm, hand-picked by Musk whose controversial pay package she defended, has also drawn criticism for her own pay package along with questions about whether that compromised her oversight of Tesla and Musk. Denholm has dismissed the allegations and a spokesperson has said her pay was fair.
The eight-person Tesla board, which also includes Musk's brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch, has been looking to add an independent director, the report said.
(With inputs from agency)