Tesla Dismisses CEO Replacement Rumors as Musk’s Focus Faces Scrutiny

Tesla’s stock remained steady in Thursday’s premarket session after the company strongly denied a Wall Street Journal report claiming its board was seeking a new CEO to replace Elon Musk. The article alleged that board members had contacted multiple executive recruitment firms to initiate a formal search process. The speculation briefly caused Tesla shares to tumble by up to 3% during overnight trading on Robinhood before rebounding.

Robyn Denholm, Tesla’s chair, swiftly addressed the rumors on the social platform X, branding the report as "absolutely false." She clarified that no such discussions or outreach had taken place, and emphasized that Elon Musk remains CEO with the full backing of the board. Denholm further stated that this had already been communicated to the media before the report was released.

The controversy arrives at a time of financial turbulence for the electric vehicle manufacturer, which recently reported disappointing first-quarter results. Both revenue and profit figures missed analyst expectations, adding to shareholder anxiety. Musk acknowledged that external factors, including his political involvement, may be impacting the company’s market performance.

Specifically, Musk admitted that his association with the Trump administration could be affecting Tesla’s stock price. During a recent earnings call, he announced that starting in May, he will dedicate just one or two days per week to a new government-related project titled the “Department of Government Efficiency.”

Despite the distractions and earnings miss, Tesla’s leadership remains firm in its support of Musk. The company is positioning the current turbulence as a temporary hurdle and maintains confidence in Musk’s ability to drive Tesla’s long-term growth and innovation strategy.