Tesla board rejects new CEO search reports, backs Musk to lead growth plans

Elon Musk last week announced that he would spend less time running US President Donald Trump's DOGE from this month

Tesla chair Robyn Denholm on Thursday dismissed reports that board members had contacted recruitment firms to find a successor to Elon Musk, calling them "absolutely false". She affirmed the board’s confidence in Musk’s ability to continue driving the company’s ambitious growth plans.

 According to a Wall Street Journal report, about a month ago, Tesla board members contacted multiple executive search firms to explore potential successors to CEO Elon Musk. The report noted that the move was prompted by concerns over Musk's deepening ties with the Trump administration and his role in running the Department of Government Efficiency (DOGE).  

 

 

The report said the board had zeroed in on a leading executive search firm.

 

Any leadership change at Tesla would be significant, as Musk has led the electric vehicle company for nearly two decades. According to the report, Tesla’s eight-member board was also seeking to appoint an independent director. Some board members, including co-founder JB Straubel, reportedly met major investors to assure them of the company’s stability.

 

Tesla facing decline amid political and trade pressures

 

Musk’s ties to the Trump administration and the push for federal spending cuts have drawn sharp criticism. Protesters have staged demonstrations at Tesla showrooms around the world, condemning his role in government job cuts. Several cities have reported acts of vandalism and employee walkouts, which have impacted Tesla’s sales. 

 

Musk’s political involvement comes at a challenging time for Tesla. In 2024, sales of Tesla’s electric cars saw their first annual decline in over a decade. The company is also grappling with the impact of shifting trade policies. Earlier this month, Tesla reported a 13 per cent drop in Q1 deliveries.

 

Musk to spend less time at DOGE

 

Musk last week announced that he would spend less time running US President Donald Trump’s DOGE from this month. The announcement came as Tesla reported a 71 per cent drop in quarterly profit and a 20 per cent decline in automotive revenue.