Tesla Chairman Robyn Denholm denied a report that the board is seeking to replace its CEO Elon Musk in response to sales plunges and widespread opposition from a coalition with U.S. President Donald Trump.
"Earlier today, a media report erroneously claimed that Tesla's board of directors had contacted the recruiting company to launch a CEO search at the company," Danom said in an article on social media platform X early Thursday morning.
"It's absolutely wrong... Tesla CEO is Elon Musk, and the board is very confident in his ability to continue the exciting growth plan."
She is responding to a story published a day ago in the Wall Street Journal that said the board recruited his successor with the headhunter after growing concerns about the time he spent in Washington.
Tesla is under Musk's political activism and his advocacy for global conservative causes, which are sold in some of its most important markets and have sparked protests in its dealerships and automobile sabotage.
The automaker's first-quarter profit fell 71%, and even the most pessimistic expectations were lowered, as Tesla lost its crown and became the world's largest electric car maker for Chinese rival Byd. Its stock has fallen 30% since the beginning of the year
Last week, Musk succumbed to investor pressure, promising to “significantly” shrink his job as head of the so-called Department of Government Efficiency (DOGE), which was originally scheduled to continue until 2026 and begin “distribute more of my time to Tesla.”
Musk, the richest man in the world, has allocated his time between companies including social media platform X, including social media platforms, and he recently merged with his artificial intelligence company XAI, as well as SpaceX and Neuralink.
Musk's outspoken nature led to clashes with members of the Trump cabinet, and his office has largely evacuated offices near the White House and provided remote advice to Doge, a person familiar with the matter said.
Trump's chief of staff, Susie Wiles, told the New York Post Wednesday that Musk "is not physically (in the White House) but is not really important," adding that she regularly talks to billionaires on the phone.