Amidst growing concerns over leadership stability, Tesla's board of directors has reportedly begun searching for a successor to CEO Elon Musk, a move that has sparked significant backlash from the billionaire himself. According to a report by The Wall Street Journal, several executive search firms were approached about a month ago to assist in finding Musk's replacement. However, Tesla's chair, Robyn Denholm, quickly refuted these claims, stating that any suggestion of an active search was "absolutely false." She expressed confidence in Musk's ability to continue executing the company's ambitious growth plans.
Elon Musk, who is not only the CEO but also the largest shareholder with nearly 13% of Tesla's stock, took to his platform X to denounce the report. He described it as an "EXTREMELY BAD BREACH OF ETHICS" and accused the Wall Street Journal of publishing a "DELIBERATELY FALSE ARTICLE" without including a denial from the Tesla board.
This controversy comes at a time when Musk's net worth has significantly declined, and Tesla's stock has taken a hit amid a public backlash over his involvement in the Trump administration. Musk has been leading the Department of Government Efficiency (DOGE), where he has overseen the dismissal of tens of thousands of government employees. His association with far-right parties in Europe has also led to protests against him and vandalism at Tesla showrooms and charging stations across the U.S. and Europe. In response to this unrest, President Trump labeled the vandals as "terrorists."
As part of the fallout from these events, Musk indicated that he would be reducing the time he spends with DOGE starting in May 2025, intending to focus more on running his various companies, including Tesla, SpaceX, and X. Reports suggest that board members met with Musk to request that he publicly commit to spending more time at Tesla, although it remains unclear whether Musk was aware of any succession planning discussions.
On April 30, 2025, Trump publicly supported Musk, stating that he could remain part of his administration for as long as he wished. Trump asserted that Musk had been treated "unfairly" for his role in reducing the size of the federal government, adding, "You really have sacrificed a lot." This endorsement from the former president adds another layer of complexity to Musk's situation, as he navigates the challenges of his leadership role amidst declining sales of Tesla's aging electric vehicle lineup.
In light of these developments, Tesla is at a critical juncture. The company faces increasing competition in the electric vehicle market, and Musk has shifted focus from his original promise of creating an affordable EV platform to exploring the realms of driverless taxis and humanoid robots. This pivot indicates a broader vision for Tesla as an AI and robotics company rather than merely an automaker. Much of Tesla's valuation is now hinged on this ambitious future.
As investors express concern over Musk's time away from Tesla and the controversies surrounding his political affiliations, some Tesla directors, including co-founder JB Straubel, have been proactive in meeting with major investors to reassure them that the company remains in capable hands. However, there are lingering doubts about the board's independence and its ability to effectively manage Musk's influence.
Denholm, who was hand-picked by Musk, has herself faced criticism regarding her pay package and whether it compromises her oversight of Tesla and Musk's actions. In March 2025, she sold approximately $33.7 million worth of Tesla stock, raising eyebrows among investors. The eight-member Tesla board, which includes Musk's brother Kimbal Musk and James Murdoch, the son of media mogul Rupert Murdoch, has been exploring the possibility of adding an independent director to enhance governance.
As the situation unfolds, the future of Tesla hangs in the balance, with investors and stakeholders keenly watching how Musk navigates this turbulent period. With the electric vehicle market becoming increasingly competitive and public sentiment shifting, the board's decisions in the coming weeks could prove pivotal for the company's trajectory.
In summary, the recent turmoil surrounding Elon Musk and Tesla's leadership has raised significant questions about the company's future direction. While Musk remains a pivotal figure for Tesla, the board's actions, investor confidence, and public perception will ultimately shape the path ahead for one of the world's most influential electric vehicle manufacturers.
