WSJ Reports "Tesla Sought Musk's Successor Last Month"
Tesla Board Chair and Musk Deny Claims on Social Media
Recently, some media outlets reported that the Tesla board of directors is searching for a successor to CEO Elon Musk. In response, both the chair of Tesla's board and Musk himself have come forward to categorically deny these reports.
On May 1 (local time), according to the BBC, Tesla released a statement saying, "The recent reports claiming that the company contacted recruiting firms to find a successor to Elon Musk as CEO are completely false." The previous day, The Wall Street Journal (WSJ) reported that Tesla's board began searching for Musk's successor last month. WSJ explained that this was due to disappointment stemming from Musk focusing solely on his duties under President Donald Trump's administration, as well as a decline in Tesla's stock price. However, the outlet also stated that it could not confirm whether the board's plan to select a successor is still ongoing or has since been halted.
On the 30th of last month, Elon Musk, head of the Department of Government Efficiency (DOGE), spoke during an official meeting held at the White House. Photo by AP
Robin Denholm, chair of Tesla's board, wrote on social media platform X (formerly Twitter), "There have been media reports containing the false claim that Tesla's board contacted recruiting firms to find a CEO for the company," adding, "This is completely untrue." She continued, "Elon Musk is Tesla's CEO, and the board has great confidence that Musk will continue to execute his exciting growth plans going forward."
Musk also denied the WSJ report and strongly criticized it. He stated, "By deliberately publishing a false article and omitting the board's clear denial, the WSJ has committed an extremely serious ethical violation." Musk also reposted (retweeted) a comment on X in which a user referred to the outlet as "trash," adding, "The WSJ has insulted journalism." Previously, during a conference call for Tesla's earnings announcement last week, Musk had promised, "I will devote more time to Tesla," and said he would "significantly" reduce his role in government.
Musk has faced backlash as he leads the newly established Department of Government Efficiency (DOGE) under President Trump, drastically reducing federal agency budgets and spearheading large-scale layoffs. This negative sentiment toward Musk has extended to Tesla vehicles and stores. Some Tesla customers have declared that they will boycott the company's vehicles because of Musk, and there have also been attacks on Tesla stores and vehicles.
For the first quarter of this year, Tesla's sales and net profit fell by 9% and 71%, respectively, compared to a year earlier. However, some analysts have pointed out that Musk has gained considerable business advantages through his government activities. SpaceX, Musk's space exploration company, secured a contract with the Department of Defense worth about 8.5 trillion won, and some believe that he will continue to have a favorable position in securing future government contracts.
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