Tesla chair Robyn Denholm has publicly denied reports that the company’s board is seeking to replace CEO Elon Musk, following a sharp drop in sales and growing controversy over Musk’s political ties, including his alliance with former President Donald Trump.
Denholm addressed the rumors early Thursday morning on Tesla’s official account on X, the social media platform owned by Musk. “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,” she wrote. “This is absolutely false … The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”
Her remarks were a direct rebuttal to a story published by the Wall Street Journal, which claimed the board had approached headhunters to begin the search for Musk’s successor amid concerns about his political entanglements and time commitments in Washington.
According to the Financial Times, Musk’s growing political activism and high-profile support for conservative figures, including Trump, have contributed to a sales slump in key global markets. The backlash has included protests at Tesla dealerships and vandalism of its vehicles. The company’s first-quarter earnings plummeted 71%, falling below even the most pessimistic forecasts. Tesla has also lost its position as the world’s leading EV manufacturer to China’s BYD. Its stock has fallen 30% since January, wiping out over $800 billion in market value.
In response to mounting investor pressure, Musk last week announced he would significantly reduce his role in Washington. He had previously been heading the controversial Department of Government Efficiency (Doge), a political initiative that was initially expected to run through 2026. Musk said he will now “allocate far more of my time to Tesla.”
Despite being the world’s richest man, Musk juggles leadership roles across multiple high-stakes ventures, including SpaceX, Neuralink, and social media platform X, which he recently merged with his artificial intelligence company xAI.
Though Musk had clashed with members of Trump’s cabinet in the past, he has more recently become an influential advisor, though largely from a distance. Sources familiar with the matter say Musk has vacated his Washington office and now provides remote input to Doge. Trump’s chief of staff Susie Wiles confirmed to the New York Post that while Musk hasn’t been physically present at the White House, “it really doesn’t matter much,” adding that she speaks with him regularly by phone.
As Tesla navigates mounting challenges both inside and outside the boardroom, the company’s leadership remains adamant that Musk is the right person to steer its future — despite mounting scrutiny from investors, customers, and political observers alike.
