Tensions at Tesla escalate as the company denies reports of a board-led effort to replace Elon Musk, amid protests over his work with the Trump administration and far-right themes.
Tesla Denies Report of Board’s Plans to Replace Elon Musk
Protests outside Tesla stores have grown amid Elon Musk’s work with the Trump administration and his embrace of global far-right themes.
Tesla has denied a report claiming that its board sought to replace Elon Musk as its chief executive, citing a Wall Street Journal article saying headhunters were contacted. The company’s chair, Robyn Denholm, stated in a social media message that the claim is ‘absolutely false‘ and that the CEO remains confident in his ability to execute the company’s growth plan.
The Tesla board of directors has initiated a search for a new CEO, following Elon Musk's assumption of the role in addition to his existing responsibilities as CTO and product architect.
This move aims to alleviate pressure on Musk and ensure effective leadership.
The board's decision comes after a series of high-profile controversies, including a settlement with the SEC over Musk's Twitter posts.
Tesla's stock price has been volatile, and the company faces intense competition in the electric vehicle market.
Tensions at Tesla
The reported move comes as tensions have grown at Tesla around falling profits and criticism of Musk for spending much of his time in Washington. The company has been hit by a widespread backlash against Musk’s recent political activity, including his support for the far-right Alternative für Deutschland party before German national elections in February.
Sales of the electric car have dropped in some of its biggest markets, and there have been protests at some of its showrooms. Last week, Tesla reported that profits had dropped by 71% in the first quarter of this year to $409m (£307m), compared with $1.39bn in the same period in 2024.
Musk’s Time Commitment
Musk told investors that starting from May he would be allocating far more of his time to Tesla, following a strict 130-day cap on his service as a special government employee. There have long been concerns around the demands on Musk‘s time, as he oversees four other companies, including SpaceX and X.
Response to the Report
Musk denounced the Wall Street Journal report on X, calling it an ‘EXTREMELY BAD BREACH OF ETHICS‘ that published a deliberately false article without including an unequivocal denial from the Tesla board of directors.
- theguardian.com | Tesla denies report claiming board looked to replace Elon Musk
