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First with the News

Tesla Chairman Denies Plan To Replace Elon Musk

Denholm, in a post on X, stated that the report was "absolutely false" and said the EV maker's board is "highly confident" in Musk's ability to "continue executing on the exciting growth plan ahead".

May 1, 2025
in Technology and Science, Top Stories
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Tesla CEO, Elon Musk

Tesla CEO, Elon Musk

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By Enyichukwu Enemanna

Robyn Denholm, chairman of electric vehicle manufacturing firm Tesla, on Thursday described as “false” a media report alleging that board members had reached out to executive search firms to find a replacement for CEO Elon Musk.

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The Wall Street Journal had reported on Wednesday that Tesla board members, about a month ago, contacted several executive search firms to identify a new CEO, citing people familiar with the discussions.

Denholm, in a post on X, stated that the report was “absolutely false” and said the EV maker’s board is “highly confident” in Musk’s ability to “continue executing on the exciting growth plan ahead”.

Musk, himself a close ally of US President Donald Trump and head of the Department of Government Efficiency (DOGE), also said on X that the report was a “deliberately false article”.

He stated last week that he would significantly cut back on the time he devotes to the Trump administration and spend more time running Tesla.

At DOGE, the tech billionaire has led efforts to reduce federal jobs.

His role has been one of the most controversial aspects of Trump’s presidency, and his time away from Tesla has added to investor concerns, especially as sales of its ageing EV lineup have declined.

According to The Wall Street Journal, Tesla board members had met Musk and asked him to publicly commit to spending more time at Tesla than with the Trump administration.

However, it was unclear whether Musk, who is also a board member, was aware of the succession planning or whether his pledge to prioritise Tesla had affected those efforts, the report added.

Amid rising global competition, Musk has shifted focus from his earlier promise of an affordable new EV platform to the rollout of driverless taxis and humanoid robots, emphasising Tesla’s future as an AI and robotics company rather than an automaker.

Some Tesla directors, including co-founder JB Straubel, have reportedly met with major investors to reassure them that the company remains in good hands, the WSJ said.

Activist investors have long accused Tesla’s board of lacking independence and failing to rein in Musk.

Denholm succeeded Musk as Tesla chair in 2018, having been hand-picked by Musk himself.

An Australian business executive, she joined Tesla’s board in 2014 as an independent director.

Her pay package has drawn criticism, with questions raised about whether it compromised her ability to provide oversight of Tesla and Musk. Denholm has dismissed such allegations, and a spokesperson has said her compensation was fair.

The eight-member Tesla board, which includes Musk’s brother, Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch, has reportedly been looking to add an independent director, according to the report.

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