Tesla, Elon Musk deny report company is looking – Business News
Tesla and Elon Musk are pushing back in opposition to a report claiming the company’s board launched a seek for a successor to the mercurial CEO final month as he spent time away from the company main President Trump’s Department of Government Efficiency.
The Wall Street Journal reported late Wednesday that the board had reached out to govt search companies to provoke a formal course of to determine potential replacements for Musk because the electric car maker grapples with slowing gross sales, shrinking earnings and a bruising 12 months on the stock market.
The report, which cited sources aware of the matter, triggered an instant response from traders and despatched Tesla’s stock down as a lot as 3% in after-hours trading on Robinhood earlier than recovering some of the losses.
Tesla is pushing back in opposition to a report claiming its board is actively looking for a successor to CEO Elon Musk. REUTERS
Musk reacted to the Journal report, writing on X: “It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!”
In a subsequent post, Musk wrote: “WSJ is a discredit to journalism.”
Tesla board chair Robyn Denholm, who has offered more than $150 million in company stock since December, additionally took to the social media platform X to denounce the story.
“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company,” Denholm wrote on Tesla’s official X account.
“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”
The Journal offered a assertion to The Post which learn: “We stand by our reporting. Tesla was given the opportunity to provide a statement before publication, which they did not do.”
The Journal, like The Post, is a subsidiary of News Corp.
Tesla’s board reportedly reached out to govt search companies to provoke a formal course of to determine potential replacements for Musk. REUTERS
The timing of the report comes at a difficult second for Tesla.
The company not too long ago reported a vital drop in each income and internet income for the primary quarter of 2025, falling short of Wall Street expectations.
Tesla’s whole income for the January-March period fell 9% year-over-year to $19.34 billion, effectively beneath the $21.11 billion forecast by analysts, in accordance with LSEG information.
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Revenue from Tesla’s core automotive business fell even more sharply — down 20% to $14 billion.
The company attributed the decline to a number of elements, together with decrease average promoting costs, elevated gross sales incentives and non permanent manufacturing unit shutdowns as Tesla prepares to launch a refreshed model of its fashionable Model Y SUV.
Meanwhile, internet income plunged 71% to $409 million, or 12 cents per share, in contrast with $1.39 billion, or 41 cents per share, during the identical period final 12 months.
The report, which cited sources aware of the matter, triggered an instant response from traders and despatched Tesla’s stock down as a lot as 3% in after-hours trading. NurPhoto through Getty Images
Since the beginning of 2025, Tesla shares have tumbled more than 30%, reflecting investor issues concerning the company’s margins, slowing demand for electric automobiles and Musk’s divided focus.
Last week, Musk revealed on Tesla’s earnings call that he plans to spend simply “a day or two per week” heading up DOGE, an initiative tied to the Trump administration that has raised questions on his dedication to Tesla.
Musk has acknowledged that his more and more overt political presence could also be having an adversarial impact on Tesla’s stock, although he has remained defiant about his management and long-term imaginative and prescient for the company.
Despite the volatility, Denholm’s assertion strengthened the board’s confidence in Musk’s management, signaling that — at the least for now — there are no plans to seek for a new chief govt.
