Tesla board chair denies reports company was looking to replace Elon Musk
Tesla chair Robyn Denholm on Thursday denied a Wall Street Journal report that said board members had reached out to executive search firms to find a replacement for CEO Elon Musk.
The Journal had reported on Wednesday that about a month ago, Tesla's board members had reached out to several executive search firms to find a new CEO, citing people familiar with the discussions.
Denholm called the report "absolutely false" and said on X the EV maker's board is "highly confident" in Musk's ability to "continue executing on the exciting growth plan ahead."
Musk said on X the report was a "deliberately false article." Activist investors have long accused Tesla's board of lacking independence and failing to rein in Musk.
Tesla is at a crucial juncture. Musk has pivoted from his promise of making a new, affordable EV platform to rolling out driverless taxis and humanoid robots, highlighting Tesla's future as an AI and robotics company rather than an automaker.
However, shares have been sliding for months, as its EV sales have slumped in the U.S. and Europe in a backlash to his embrace of far-right politics and as competitors have started to take up market share with newer models.
Musk's role in the Trump administration overseeing efforts to cut federal jobs has resulted in considerable resentment in the U.S. His work at the Department of Government Efficiency (DOGE) has been one of the most controversial aspects of the Trump presidency.
The role also took up much of the billionaire's time. Musk said Wednesday that he was working on DOGE seven days a week during the first months of the administration, at times sleeping in the Lincoln Bedroom at Trump's invitation.
Musk told reporters on Wednesday that he would spend one to two days on DOGE-related work each week going forward, and that he'd be in Washington less frequently.
Questions about Tesla brandThe political shift has led to protests against Musk and the company, as well as vandalism at its showrooms and charging stations in the U.S., Europe and Canada.
Shares of Tesla were up marginally in Thursday's pre-market action. The company's stock value hit a high in December, but has more than halved since then.
The board members met Musk and asked him to acknowledge publicly that he would spend more time at Tesla, the WSJ report said.
It was unclear if Musk — also a board member — was aware of the succession planning, or if his pledge to spend more time at Tesla has affected the efforts, the report said.
Much of the company's valuation is based on that vision and some investors say Trump will further it. Last week, federal regulators eased rules for testing autonomous vehicles, boosting Tesla's stock.
Some Tesla directors, including co-founder J.B. Straubel, have been meeting with major investors to reassure them the company is in good hands, the WSJ said.
Denholm, hand-picked by Musk whose controversial pay package she defended, has drawn criticism for her own pay package, along with questions on whether that compromised her oversight of Tesla and Musk. Denholm has dismissed the allegations and a spokesperson has said her pay was fair.
In March, Denholm sold about $33.7 million US worth of the electric automaker's stock, according to a regulatory filing.
The eight-person Tesla board, which includes Musk's brother Kimbal and James Murdoch, son of media mogul Rupert Murdoch, has been looking to add an independent director, the report said.
cbc.ca
