Tesla Denies CEO Search Amid Market Rumors and Investor Jitters

Tesla shares remained steady in Thursday’s premarket trading following a Wall Street Journal report suggesting the company’s board was actively looking to replace Elon Musk as CEO—a claim the electric vehicle maker strongly denied. The report, allegedly based on insider sources, stated that Tesla’s board had reached out to executive search firms to initiate a formal CEO search. The speculation triggered a brief 3% drop in Tesla’s shares on Robinhood before stabilizing.

Responding to the report, Tesla chair Robyn Denholm took to social media platform X to label the article “absolutely false.” She clarified that no such recruitment efforts had taken place and reiterated the board’s full support for Musk. “The CEO of Tesla is Elon Musk,” she wrote, adding that the board maintains strong confidence in his leadership and the company’s ambitious growth trajectory.

The controversy emerged in the wake of Tesla’s disappointing first-quarter performance, where both revenue and profit figures fell short of analysts’ expectations. The decline has raised concerns among investors about the company’s direction and the potential distractions stemming from Musk’s growing involvement in political and governmental activities.

Adding to the unease, Musk recently disclosed on a Tesla earnings call that he would soon begin dedicating limited time—only “a day or two per week”—to overseeing a new governmental initiative called the Department of Government Efficiency. This announcement came amid rising speculation that his external engagements could be impacting Tesla’s performance and market perception.

Despite the rumors and recent financial setbacks, Tesla’s leadership insists that Elon Musk remains firmly at the helm. The company continues to project confidence in his vision, as it navigates through market challenges and strives to maintain its dominant position in the evolving electric vehicle landscape.