Extremely Bad Breach of...: Elon Musk Denies Report That Claimed Tesla Board Searching for New CEO

Tesla and its board have categorically denied a Wall Street Journal report claiming the company has begun searching for a successor to CEO Elon Musk.

Musk fired back on X (formerly Twitter), calling the article “an EXTREMELY BAD BREACH OF ETHICS” and accusing the Wall Street Journal of publishing a “DELIBERATELY FALSE ARTICLE”—despite, he said, a prior denial from Tesla’s board.

The WSJ report, citing unnamed sources, alleged that Tesla’s board had contacted executive search firms to explore a potential leadership transition, citing growing investor concerns over Musk’s shifting focus and Tesla’s recent performance challenges.

Political Distractions Fuel Speculation

Speculation around Musk’s future at Tesla was fueled by his deepening involvement with former President Donald Trump ’s administration—particularly through his leadership of the Department of Government Efficiency (DOGE), a controversial initiative aimed at cutting federal jobs.

Musk’s political entanglements have triggered unease among both investors and board members, especially as the company faces declining EV sales and heightened competition in global markets.

Last week, Musk publicly pledged to scale back his role in government affairs and recommit his focus to Tesla. Company directors had reportedly encouraged him to make that statement to help calm stakeholder concerns.

Also Read: Elon Musk to Visit India This Year, Hails Talk with PM Modi as 'Honour' | Republic World

Controversy and Investor Backlash

However, it remains unclear whether Musk—who also sits on the board—was aware of any internal discussions around succession planning or if his renewed focus has altered the board’s direction.

Musk’s alignment with far-right ideologies in Europe has further stoked controversy, prompting protests and acts of vandalism targeting Tesla showrooms and charging stations across both the U.S. and Europe. For many investors, these incidents have deepened concerns about Musk’s ability to steer Tesla through a critical phase of its evolution.

Behind the scenes, board members—including Tesla co-founder J.B. Straubel—have reportedly engaged with major investors to reassure them that the company’s leadership remains stable, according to the Wall Street Journal.

Still, the board continues to face scrutiny. Activist investors have long criticized it for lacking independence and failing to provide adequate oversight of Musk’s influence.

Leadership under the scanner?

Board Chair Robyn Denholm—appointed by Musk and known for defending his controversial pay package—has also come under fire for her own compensation, which critics argue could compromise her impartiality. Denholm has rejected those criticisms, and a spokesperson has stated her pay is fair.

In a statement shared publicly, Tesla reiterated its position: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk, and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”

Tesla’s eight-member board includes Musk’s brother, Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch. The board is reportedly considering the addition of an independent director to further strengthen governance.

As of publication, neither Musk nor Tesla had responded to the Wall Street Journal’s request for comment.

Reinventing Tesla

Amid the leadership debate, Tesla is undergoing a significant transformation. Once focused on making electric vehicles more affordable and mainstream, Musk has shifted the company’s trajectory toward autonomous robotaxis and humanoid robots.

He now envisions Tesla as a leader in AI and robotics—a bold departure from its identity as a conventional EV maker. This pivot, supported by a recent regulatory easing on autonomous vehicle testing, has boosted Tesla’s stock and reaffirmed investor confidence in Musk’s ambitious long-term vision.