Tesla CEO Elon Musk has hit back at claims that the company is hunting for his successor, calling the report “deliberately false” and a “bad breach of ethics.”
"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," said Musk in a post on X.
Robyn Denholm, chairman of the board of directors of Tesla Motors, also claimed in a statement that the report is absolutely false and they have communicated the same 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," she added.
On Wednesday, the Wall Street Journal reported citing various sources that Tesla's board had contacted multiple executive placement firms to begin a search process for a new CEO to replace Elon Musk. However, it was unclear when Musk might have been removed or if the search for his replacement is still ongoing.
The report sent shockwaves to Tesla's share, declining over 3% on Wednesday. Tesla share price ended 3.38% lower at $282.16. In the extended hours, Tesla shares gained 0.13%.
The revelation of this report indicated that Tesla's struggling stock, which fell as much as 45% this year, might have tested the board's patience, especially when Musk seemed to be devoting a lot of time to the White House’s Department of Government Efficiency (DOGE) initiatives.
The report also stated that it was unclear whether Musk’s announced return altered the status of the succession planning. It was also unknown if Musk, a Tesla board member as well, knew about the search effort or not. Reportedly, when the board started their search for a new successor, they also informed Musk that he should be spending more time at the company and Musk did not push back.
“This situation with Musk at DOGE was reaching a breaking point, but we believe that cooler heads have now prevailed and that the Board is now NOT actively looking to replace Musk as CEO and this code red situation is now in the rearview,” said analysts led by Dan Ives, global head of technology research at financial services firm Wedbush Securities. They also believe that he would remain in the role for at least five years.
During a cabinet meeting on Wednesday, US President Donald Trump expressed his gratitude towards Musk for his service to the government. Even as Musk's role at DOGE will end soon but he is still expected to continue some of his work with the White House.
However, it is not only helping Trump's administration that divided Musk's attention. He also faced questions over spending time on multiple companies, including Twitter or now X.
Tesla’s India Plan
Various reports suggested that Tesla is soon planning to enter India, a plan that has been delayed because of the country's substantial import tariffs. Bloomberg reported that the company's correspondence to customers, who placed bookings in 2016, said, "We would like to return your reservation fee for the time being. When we finalise our offerings in India, we will reach out in the market again."
This communication has indicated the manufacturer's intention to commence operations in India soon, fueled by ongoing trade talks between India and the US, which likely to reduce automobile tariffs. Elon Musk also recently announced his plan to visit India this year.
