Tesla Chairman Robyn Denholm has called rumours about the possibility of replacing Elon Musk as CEO “completely false.” It all began after a report surfaced suggesting the company had been in contact with recruiting firms to find a new CEO, following the recent decline in revenue and stock value.
Denholm, using Tesla’s official account on the X social media platform , categorically denied any involvement of the Board of Directors in these rumors.
“A media report erroneously claimed that Tesla’s Board of Directors had contacted recruiting firms to begin a CEO search for the company. This is completely false (and was communicated to the media prior to the report’s publication),” the executive said.
The Wall Street Journal had reported that senior Tesla executives were holding preliminary talks with recruiters to begin a “formal process to find the next CEO.” However, this report was quickly refuted by Denholm, who reiterated the board’s confidence in the current CEO.
“Musk is Tesla’s CEO, and the board has full confidence in his ability to continue executing on the promising growth plan ahead,” he added.
In a previous statement, Musk had commented that he would significantly reduce his time spent with the Department of Government Efficiency (DOGE), part of President Donald Trump’s efforts to cut government spending. This announcement coincided with the news that Tesla’s net profit fell 71% in the first quarter of 2025, reaching $409 million after a 20% decline in revenue.
Growing competition from electric vehicle manufacturers, especially from China, has led to a decline in Tesla’s market share in several key regions. In this context, Musk’s decision to reduce his involvement in government efforts has been viewed as strategic within the company.