By A recent report claiming Tesla was actively exploring a replacement for CEO Elon Musk has been firmly denied by the company’s leadership. Robyn Denholm, chair of Tesla’s board, quickly rejected the claims, calling them “absolutely false” in a public post. She emphasized the board’s continued confidence in Musk’s leadership and its commitment to the company’s growth strategy.
The report, originally published by the Wall Street Journal, alleged that unnamed sources had indicated the board was in early discussions with executive search firms to evaluate potential candidates. However, both Denholm and Musk wasted no time in shutting down the story. Musk referred to it as a “deliberately false article,” reinforcing the board’s message that he is firmly in control.
Despite these emphatic denials, the timing of the report isn’t entirely surprising. Musk’s attention has been split in recent months due to his involvement with the Department of Government Efficiency (DOGE), a controversial initiative linked to the Trump administration. His role in attempting to downsize federal agencies drew widespread media coverage and criticism.
Just last week, Musk announced plans to reduce his government-related commitments to refocus on Tesla. This announcement may have served to reassure the board and ease investor concerns that he was drifting too far from day-to-day operations. Still, the speculation about succession planning suggests not everyone was convinced that his return would be permanent or sufficient.
Tesla’s brand has also taken hits beyond leadership distractions. Declining vehicle sales and politically charged rhetoric from Musk have sparked protests and a drop in resale value for Tesla cars in several markets, particularly in Europe. This public backlash has intensified questions about how his personal brand affects the company’s long-term reputation and customer loyalty.
In light of these developments, the report indicated that Tesla directors, including board member and company co-founder JB Straubel, have been engaging directly with major shareholders. The goal has been to provide assurances that, despite the noise, the company’s leadership remains stable and committed.
At the heart of this conversation is a broader strategic shift at Tesla. Rather than doubling down on affordable EVs—a longtime promise—the company appears to be prioritizing autonomous vehicles and robotics. Musk is increasingly positioning Tesla as an artificial intelligence company, not just an automaker. While some investors are enthusiastic about this pivot, others remain skeptical of its commercial viability and timing.
Even as Tesla’s leadership denies any active search for a new chief executive, the conversation around governance and direction isn’t going away. The denial itself may quiet rumors temporarily, but it also highlights real concerns about how the company is adapting to new challenges and how Musk’s leadership style fits into that future.
For now, the message from Tesla’s board is clear: Elon Musk remains at the helm. Whether that will be enough to satisfy uneasy investors is a question that may linger well beyond the news cycle.