Tesla CEO Elon Musk has lashed out against The Wall Street Journal in public for issuing a report stating the company’s board was actively searching for his replacement. In a response on X (formerly Twitter), Musk decried the report as a ‘deliberately false article’ and called out the publication for an ‘Extremely bad breach of ethics’.
Tesla board chair Robyn Denholm also dismissed the WSJ report as ‘absolutely false’. She reiterated the board’s confidence in Musk, stating that it still has faith in his leadership and capacity to continue ‘executing on the exciting growth plan ahead’.
What the WSJ Report Alleged
According to The Wall Street Journal, Tesla board members had approached executive search firms about a month ago, a time it described as a crisis period for the electric vehicle company. Citing unnamed sources, the report said the board’s concerns were partly fueled by investor unease over Musk’s increasing focus on his U.S. government-related cost-cutting efforts and the amount of time he was devoting to Tesla.
It also accused some board members of quietly asking Musk to be more available at the company. Musk, according to the report, did not reject this idea. Although one search firm was said to have been contacted, the article said that it is unclear how far along the succession planning is.
Growing Challenges for Tesla
Tesla has been facing several issues that have tarnished its market position. Musk’s engagement in politically controversial government positions has been said to have sparked customer outrage, diluting the Tesla brand and leading to an electric vehicle sales slump.
By March, there were protests in the U.S. and Europe that were focused on Tesla’s showrooms, vehicles, and charging stations. Meanwhile, the business has been subjected to mounting financial pressures with higher costs attributed to U.S. President Donald Trump’s trade policies.
Adding fuel to the fire, Denholm has offloaded a significant amount of her Tesla holdings since December and collected about $150 million through the sales.
