Tesla Board Dismisses Reports of CEO Replacement for Elon Musk
Board’s Response to Replacement Rumors
The chair of Tesla’s board of directors, Robyn Denholm, has categorically denied recent reports suggesting that the company is actively seeking a replacement for CEO Elon Musk. Denholm stated on the social media platform X that the claims reported by The Wall Street Journal are “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,” Denholm expressed through Tesla’s official account.
Background and Financial Context
This denial comes on the heels of a tough financial quarter for Tesla, which saw a significant 71% decline in profit. Following these poor results, Musk committed to dedicating more time to Tesla, indicating he would limit his government-related activities to one or two days a week.
Investor concerns have grown regarding Musk’s dual focus on Tesla and his role in supporting the Trump administration’s policies, particularly in areas concerning government spending cuts. His involvement with politically conservative causes has led to protests at Tesla dealerships, affecting brand perception among its primarily liberal customer base.
Sales Performance and Competitive Landscape
For the first quarter of this year, Tesla reported a 9% drop in revenue, totaling $19.3 billion. Market analysts noted that the automaker has been losing ground in the United States, China, and Europe, as competitors like BYD, General Motors, and Volkswagen launch various electric vehicle models.
The market dominance of Tesla is increasingly challenged as many consumers await a broader range of models beyond its flagship vehicles, the Model Y SUV and Model 3 sedan. Despite anticipation, the sales performance of the company’s new offering, the Cybertruck, has not met expectations.
