Tesla Chair Robyn Denholm on Thursday dismissed a report that the company’s board was actively searching for a replacement for CEO Elon Musk, calling the claims “absolutely false” and reiterating confidence in his leadership.
Denholm responded on social media platform X, stating the electric vehicle maker’s board is “highly confident in Elon’s ability to continue executing on the exciting growth plan ahead.”
The Wall Street Journal reported on Wednesday that Tesla board members had contacted executive search firms about a month ago to explore CEO succession options. Citing unnamed sources familiar with the matter, the Journal linked the reported move to concerns over Musk’s expanding role in former President Donald Trump’s administration and his reduced presence at Tesla.
The Journal said in a statement that it “stands by its reporting.” Musk, responding on X, described the article as a “deliberately false” report.
The issue has drawn renewed attention to concerns from activist shareholders who have long criticized the Tesla board for its close ties to Musk and its perceived lack of independence. The board includes Musk’s brother, Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch.
Tesla is navigating a critical strategic transition. Musk has shifted the company’s focus from developing an affordable EV platform to advancing autonomous vehicles and robotics. That vision has become central to Tesla’s long-term valuation, even as its EV sales have weakened in key markets such as the U.S. and Europe.
Investor unease has been amplified by Musk’s involvement in the Trump administration’s Department of Government Efficiency, a role that has sparked political backlash and consumer protests in multiple countries.
Last week, Musk said he would reduce his time with the administration to focus more on Tesla, amid calls from board members for a stronger leadership presence at the automaker. The Wall Street Journal also reported that directors, including Tesla co-founder JB Straubel, had been meeting with major investors to provide reassurances.
In March, Denholm sold approximately $33.7 million worth of Tesla stock, raising additional questions among shareholders. A Tesla spokesperson defended her compensation, calling it appropriate.