The chair of Tesla has confirmed that the board is not in the process of pursuing a new CEO, thereby reaffirming its backing for Elon Musk’s leadership.
Robyn Denholm, the chair of Tesla, denied a Wall Street Journal report on Thursday that the company’s board had initiated a search for a new CEO to succeed Elon Musk.
The Journal reported on Wednesday that Tesla board members had contacted several executive search firms approximately one month ago to investigate potential successors to Musk, citing individuals with knowledge of the matter.
Denholm referred to the report as “absolutely false” in a post on X and stated that the board continues to have “high confidence” in Musk’s leadership and his capacity to execute Tesla’s ambitious development strategies.
Musk also addressed X, describing the article as a “deliberately false” report.
Musk recently announced that he would substantially decrease his involvement with the Trump administration in order to concentrate more on the operation of Tesla.
His position as the director of the Department of Government Efficiency (DOGE), where he has spearheaded initiatives to reduce federal employment, has sparked investor apprehension and controversy, particularly in light of Tesla’s declining sales and heightened competition.
The increasing alignment of Musk with far-right politics in Europe has resulted in vandalism targeting Tesla showrooms and charging stations in both the United States and Europe, as well as protests.
Some board members privately met with Musk and requested that he publicly affirm his intention to allocate more time to Tesla, according to the Journal.
Nevertheless, it is uncertain whether Musk, who is a board member, was informed of any succession discussions or if his recent pledge influenced any prospective plans.
Tesla is currently in a critical juncture, transitioning from its initial objective of manufacturing affordable electric vehicles to a more comprehensive emphasis on autonomous transportation and humanoid robotics.
Tesla has been valued on the basis of Musk’s vision of the company as an AI and robotics company.
The stock experienced a significant increase last week as a result of the relaxation of regulations regarding autonomous vehicle testing by US regulators.
In an effort to assuage investors, certain directors, including Tesla co-founder JB Straubel, have purportedly convened meetings with significant shareholders to underscore the company’s stability.
Activist investors have long criticized Tesla’s board, contending that it has failed to effectively supervise Musk and lacks independence.
Denholm, who was appointed by Musk and has been a proponent of his controversial compensation package, has faced criticism for her own compensation and her capacity to provide independent oversight.
Denholm’s spokesperson has defended her compensation as equitable, and Denholm herself has denied the allegations.
According to a regulatory filing, Denholm sold approximately $33.7 million in Tesla shares in March.
According to reports, the eight-member board, which includes James Murdoch, the son of media tycoon Rupert Murdoch, and Musk’s sibling Kimbal Musk, is in the process of selecting an independent director.
