ISTANBUL

Tesla’s chairwoman publicly denied a report suggesting that the company’s board is actively searching for a replacement for Elon Musk, the carmaker’s controversial CEO.

The Wall Street Journal reported Wednesday that Tesla's board reached out to executive placement firms in March, considering potential successors for Musk, whose support for unpopular political stances has been widely blamed for Telsa’s plummeting sales.

Chair Robyn Denholm, however, dismissed these claims early Thursday, calling them "absolutely false" in a post on Tesla’s official account on X – another company owned by Musk – adding that “this was communicated to the media before the report was published."

She reaffirmed the board's confidence in Musk, stating that they are "highly confident in his ability to continue executing on the exciting growth plan ahead."

The speculation about Musk’s future comes amid considerable turbulence at the company.

In April, Tesla reported a shocking 71% plunge in profits for the first quarter, which many analysts attributed to Musk’s increasing focus on leading the controversial cost-cutting US Department of Government Efficiency team along with his support for extremist parties in Europe.

Moreover, the profits did not come from Tesla sales, but from sources such as carbon credits from the US government, signaling that the company’s sales picture may be worse than it seems.

Return to Tesla

Musk’s announcement that he would step back from leading the unofficial DOGE team and return to Tesla fueled uncertainty about his commitment to the company.

The same Wall Street Journal report said Musk had been advised by the board to devote more time to Tesla.

Sources suggested that the board’s actions, including the search for a potential CEO, coincided with Musk’s declining engagement with the electric car manufacturer. However, Musk reportedly did not oppose these discussions.

Market turmoil

The ongoing volatility at Tesla has been compounded by broader political and market issues.

Musk’s involvement in the Trump administration, coupled with his controversial public statements and support for far-right political causes, has led to protests against the company.

Tesla’s first-quarter struggles were partially attributed to these tensions, according to chief financial officer Vaibhav Taneja, who acknowledged the negative impact of "vandalism and unwarranted hostility" on the company’s sales.

Despite these challenges, Musk’s departure from Tesla remains uncertain.

Some sources indicated that Musk has expressed a desire to step down as CEO, citing concerns that a potential successor might not align with his long-term vision for the company.

Musk’s focus has also been split with his other ventures, including SpaceX and X, where his involvement has also sparked controversy.

Tesla’s future, under Musk’s leadership, faces a mix of challenges and opportunities, with questions about the company's direction and Musk’s involvement continuing to stir speculation.