Amid faltering financial results and plummeting profits, The Wall Street Journal has reported that Tesla’s board of directors discreetly initiated a search for a potential successor to CEO Elon Musk. Citing unnamed sources with knowledge of the matter, the outlet stated that several executive search firms were contacted to identify possible candidates for the role.
The report sparked an immediate and strongly worded backlash from Musk, who condemned the publication’s claims as “an EXTREMELY BAD BREACH OF ETHICS,” accusing the Wall Street Journal of publishing a “DELIBERATELY FALSE ARTICLE” without first seeking or including a direct denial from Tesla’s board.
Tesla board chair Robyn Denholm also issued a statement reaffirming the board’s support for Musk, asserting full confidence in his leadership and in the company’s strategic direction. Despite these denials, long-standing concerns about the independence of Tesla’s board have resurfaced. Critics have argued that the board is largely composed of individuals deeply loyal to Musk, raising questions about whether meaningful succession discussions could occur without his knowledge.
The incident underscores growing tensions at Tesla, particularly as Musk’s increasingly controversial public persona and political affiliations have sparked investor unease. His admitted drug use and divisive public behavior have contributed to reputational damage for the company, including global protests and a decline in public approval.
Financially, Tesla has shown signs of distress. The company recently reported a staggering 71% drop in net income for the first quarter of the year compared to the same period in the previous year. During a recent earnings call, Musk attempted to reassure stakeholders by promising to refocus on Tesla and reduce his involvement with the so-called Department of Government Efficiency (DOGE), an initiative that has drawn criticism for pulling his attention away from the carmaker.
In a candid interview with Axios, Musk acknowledged the toll of the recent controversies, admitting that constant scrutiny and vehicle safety incidents have taken a personal and professional toll.
As Tesla grapples with operational challenges and brand deterioration, the conflicting narratives from the company’s leadership and independent reporting continue to raise uncertainty about its long-term direction.
Source: The Wall Street Journal
