Elon Musk Denies Tesla Board Plans to Replace Him as CEO Amid Controversy

Elon Musk publicly rejected recent reports from the Wall Street Journal claiming that Tesla's board of directors is actively seeking to replace him as CEO. The Journal reported that Tesla's board had engaged executive search firms to find Musk's successor, a claim that Tesla and its chair, Robyn Denholm, have firmly denied.

Denholm stated that the report was "absolutely false" and emphasized the board's strong confidence in Musk's ability to lead Tesla through its ambitious growth plans. Musk amplified this denial by condemning the Wall Street Journal for what he described as a "deliberately false article" and a serious breach of journalistic ethics.

This controversy unfolds amid a challenging period for Tesla, marked by a 70% drop in profits during the first quarter of 2025 and declining sales, especially in Europe. Musk's recent focus on leading the Trump administration's Department of Government Efficiency (DOGE) initiative has drawn widespread criticism and protests targeting Tesla's corporate profits.

Critics argue that Musk's divided attention between Tesla and his political endeavors has negatively impacted the company's performance and public perception. Despite the turmoil, Tesla's leadership maintains that Musk remains the CEO and is committed to executing the company's strategic vision.

The episode highlights the complex interplay between corporate governance, media narratives, and executive leadership in high-profile tech companies. It underscores the importance of transparent communication between boards, executives, and the public to maintain investor confidence and organizational stability.

Implications for Tech Leadership and Corporate Strategy

Tesla’s situation serves as a case study in how leadership controversies can affect company performance and stakeholder trust. For tech companies, especially those led by high-profile founders, balancing visionary leadership with operational focus is critical. Boards must navigate these dynamics carefully to ensure continuity and growth.

Moreover, media reports can significantly influence public perception and market reactions. Companies need proactive communication strategies to address misinformation and reinforce confidence among investors, employees, and customers.

For Tesla, reaffirming Musk’s role while addressing operational challenges and market pressures will be essential to stabilizing the company’s trajectory and sustaining innovation in the competitive electric vehicle industry.