Elon Musk denies Wall Street Journal's claim of CEO search at Tesla

In the United States, a report by the Wall Street Journal surfaced on April 30, 2025, asserting that Tesla's board was seeking a replacement for CEO Elon Musk amid worries over the company's plummeting stock value and Musk's involvement in government. Following this claim, Tesla promptly issued a statement denouncing the story as 'absolutely false' and expressed strong confidence in Musk's capabilities. Tesla's chair, Robyn Denholm, took to social media to clarify that the board had not contacted any recruitment firms for a CEO search, asserting that Musk remains firmly in his position as CEO. Prior to the report, Tesla's shares fell over 3%, a reaction attributed to investor concerns regarding Musk's commitment to the company stemming from his government engagements. In a recent earnings call, Musk indicated he would dedicate more time to Tesla, encouraging investors that he would focus on the electric vehicle business moving forward. Despite the struggles with Tesla's recent quarterly earnings, where revenue and profits fell below expectations, the board’s statement reinforced Musk's central role in the company's strategic growth plan. This controversy is significant as it emphasizes the instability attributed to Musk’s dual commitments between running Tesla and participating in governmental issues. UBS analysts underscored the risks inherent to Tesla's reliance on Musk, showcasing that it would be challenging to find a leader capable of capturing the investors’ trust like Musk does. The juxtaposition of Musk's roles raises questions about his ability to steer Tesla during crucial times, especially as the company navigates a turbulent market and investor expectations. Ultimately, while Tesla's board has publicly reiterated its support for Musk, the potential leadership transition remains a topic of speculation among analysts and stakeholders alike. The need for a clear commitment from Musk to his leadership role may be essential in restoring investor confidence amid declining performance metrics. This situation reflects broader concerns about key man risk within companies highly reliant on prominent figures like Musk, and how such dynamics can influence market perceptions and company valuations.