Tesla Chair Denies CEO Succession Plans Amid Investor Concerns Over Musk’s Focus

By Staff, Agencies

Tesla Chair Robyn Denholm has rejected a Wall Street Journal report claiming the board had begun looking for a successor to CEO Elon Musk. The report, citing sources familiar with the matter, said that about a month ago, Tesla board members contacted several executive search firms to explore leadership options.

Denholm called the report "absolutely false" in a statement on X [formerly Twitter], affirming the board’s strong confidence in Musk’s leadership and vision for Tesla’s future. Musk echoed the denial, labeling the article a “deliberately false article” on his X account.

The speculation comes as Musk pledged to reduce his involvement with the Trump administration and dedicate more time to Tesla. His leadership of the Department of Government Efficiency [DOGE], where he has overseen mass federal job cuts, has stirred controversy during Trump’s second term. Investors have also raised concerns over Musk’s focus, particularly as Tesla struggles with declining sales and an aging electric vehicle lineup.

Public backlash has intensified following Musk’s alignment with far-right political movements in Europe, sparking protests and vandalism at Tesla facilities in both the US and Europe.

The WSJ report also claimed that the Tesla board met with Musk, urging him to publicly commit more of his time to the company. It remains unclear whether Musk, who is himself a board member, was aware of any formal succession planning, or whether his renewed focus on Tesla has influenced those discussions.

Tesla faces significant challenges as it transitions from traditional electric vehicles to emerging technologies such as self-driving taxis and humanoid robots. Musk has shifted the company’s narrative toward AI and robotics, a pivot that has become central to Tesla’s valuation. Some investors believe Trump’s policies will support this transformation. Recent regulatory rollbacks on autonomous vehicle testing have already bolstered Tesla’s stock.

To calm market jitters, directors including Tesla co-founder JB Straubel have reportedly held meetings with major shareholders to reassure them about the company’s direction. However, Tesla’s board has faced longstanding criticism for lacking independence and failing to hold Musk accountable. Denholm, appointed by Musk and a defender of his controversial compensation package, has also come under scrutiny for her own multi-million-dollar stock sales and potential conflicts of interest.

In March, Denholm sold approximately $33.7 million in Tesla shares, according to a Securities and Exchange Commission filing. Meanwhile, the board—composed of eight members including Musk’s brother Kimbal Musk and James Murdoch—is said to be seeking a new independent director.