Tesla Chair Confirms Board Has No Plans To Replace Elon Musk As CEO
The Journal reported on Wednesday that Tesla board members had contacted several executive search firms about a month ago to explore potential successors to Musk, citing people familiar with the matter. In a post on X, Denholm called the report “absolutely false” and said the board remained “highly confident” in Musk’s leadership and his ability to carry out Tesla’s ambitious growth plans. Musk also took to X, calling the article a “deliberately false” report. Musk recently said he would significantly reduce his involvement with the Trump administration and focus more on running Tesla. His role as head of the Department of Government Efficiency (DOGE), where he has led efforts to slash federal jobs, has stirred controversy and investor concern—particularly as Tesla faces falling sales and increased competition. Musk’s growing alignment with far-right politics in Europe has sparked protests and led to vandalism targeting Tesla showrooms and charging stations in both the US and Europe. According to the Journal, some board members met privately with Musk and asked him to publicly confirm that he would dedicate more time to Tesla. However, it remains unclear whether Musk—who is himself a member of the board—was aware of any succession discussions or if his recent pledge influenced any potential plans. Tesla is at a pivotal stage, shifting from its original promise of producing affordable electric vehicles to a broader focus on autonomous taxis and humanoid robots. Musk has positioned Tesla’s future as an AI and robotics company, a vision central to its valuation. The stock surged last week after US regulators loosened restrictions on testing autonomous vehicles. In an effort to reassure investors, some directors—including Tesla co-founder JB Straubel—have reportedly held meetings with major shareholders to emphasise the company’s stability. Tesla’s board has long faced criticism from activist investors who argue it lacks independence and has failed to effectively oversee Musk. Denholm, appointed by Musk and a defender of his controversial pay package, has come under scrutiny for her own compensation and questions over her ability to exercise independent oversight. A spokesperson for Denholm has defended her pay as fair, and Denholm herself has rejected the allegations. In March, Denholm sold roughly $33.7 million worth of Tesla shares, according to a regulatory filing. The eight-member board, which includes Musk’s brother Kimbal Musk and James Murdoch, son of media tycoon Rupert Murdoch, is reportedly looking to appoint an independent director.
Admin | 2025-05-01 15:53:57