CEO succession chatter rattles markets; Tesla Board reaffirms full confidence in Musk
1 May 2025, New Delhi
Tesla stock slid over 3% on Wednesday following a Wall Street Journal report alleging the company’s board has initiated a quiet search for a potential successor to CEO Elon Musk. The electric vehicle giant’s shares closed 3.38% lower at $282.16, although they edged up 0.13% in after-hours trading.
Citing unnamed sources, the WSJ report claimed Tesla board members contacted several executive search firms about a month ago to explore CEO succession options. The move, reportedly driven by unease over Musk’s growing involvement with the Trump administration, has raised concerns among investors about leadership stability at the EV maker.
According to the report, Tesla board members recently pressured Musk to publicly pledge to focusing more on Tesla. However, it is unclear if Musk was fully aware of the succession attempts or if his recent guarantees changed those plans. The current status of any ongoing search is unknown.
In a swift and sharp rebuttal, Musk denied the claims, accusing the publication of unethical journalism.
“It is an Extremely Bad Breach of ethics that the @WSJ would publish a Deliberately false article and fail to include an unequivocal denial beforehand by the Tesla board of directors!” Musk posted on X (formerly Twitter).
Tesla Chairwoman Robyn Denholm echoed the denial, stating on the company’s official X account:
“This is completely incorrect (and was notified to the media prior to the news being published). Elon Musk is Tesla’s CEO, and the Board is confidence in his ability to carry out the company’s ambitious development strategy.
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The timing of the report comes as Musk faces mounting investor scrutiny. His appointment as head of the newly formed Department of Government Efficiency (DOGE)—tasked with slashing federal employment—has triggered backlash, especially with Tesla grappling with a dip in electric vehicle sales and an aging product lineup.
Adding to the controversy, Musk’s public alignment with far-right political figures in Europe has sparked protests and acts of vandalism targeting Tesla showrooms and charging stations across both the US and Europe.
Just last week, Musk stated he would scale back his governmental responsibilities to refocus on Tesla and his other ventures. But for now, investor anxiety lingers amid the conflicting narratives surrounding his future role.
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