Elon Musk is angry! Tesla CEO responds to his replacement rumours: ‘DELIBERATELY FALSE ARTICLE and… EXTREMELY BAD BREACH OF ETHICS’ |
In early May 2025, Tesla Inc. faced scrutiny following a Wall Street Journal report alleging that its board had initiated a search for a successor to CEO Elon Musk. The report suggested that concerns over Musk’s involvement with the Trump administration’s Department of Government Efficiency (DOGE) and its potential impact on Tesla’s performance prompted the board’s actions. Both Musk and Tesla’s Chair, Robyn Denholm, have publicly denied these claims, asserting confidence in Musk’s leadership and commitment to the company’s future. This article examines the details surrounding the report, the responses from Tesla’s leadership, and the broader context of Musk’s dual roles.
Elon Musk
Elon Musk denies Tesla CEO replacement reports: ‘Extremely Bad Breach of Ethics’
The Wall Street Journal reported that Tesla’s board members had contacted executive search firms approximately a month prior to explore potential candidates to replace Elon Musk as CEO. The report cited unnamed sources familiar with the discussions, indicating that the board’s concerns centered around Musk’s time allocation, particularly his involvement with DOGE, which some investors believed was detracting from his responsibilities at Tesla.
Tesla leadership’s denial
In response to the report, Tesla Chair Robyn Denholm issued a statement on the company’s official X (formerly Twitter) account, categorically denying the claims. Denholm stated:
“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. 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.”
Elon Musk also responded on X, labeling the article as a “deliberately false article” and criticizing the Wall Street Journal for what he described as “an extremely bad breach of ethics.”
Investor concerns and DOGE involvement
Investor apprehension has been mounting due to Musk’s prominent role in DOGE, an initiative aimed at reducing federal spending under the Trump administration. Critics argue that Musk’s political affiliations and time spent on government duties have negatively impacted Tesla’s performance. In the first quarter of 2025, Tesla reported a 71% drop in profits and a 13% decline in sales compared to the previous year.
Musk addressed these concerns during Tesla’s earnings call, announcing plans to significantly reduce his involvement with DOGE starting in May. He emphasized his commitment to Tesla, stating that he would allocate more time to the company moving forward.
Market reaction and analyst perspectives
Following Musk’s announcement to scale back his DOGE commitments, Tesla’s stock experienced a modest uptick, reflecting investor optimism about his renewed focus on the company. Analysts have noted that Musk’s leadership is integral to Tesla’s identity and strategic direction. However, some continue to express concerns about the potential impact of his political engagements on the company’s reputation and performance.
