Embattled automaker Tesla, which has been struggling with declining sales, denied a media report on Thursday claiming that its board of directors has begun searching for a successor to its chief executive Elon Musk, who has been under scrutiny for his right-wing activism and involvement in the new Trump administration.
Tesla chair Robyn Denholm called the Wall Street Journal (WSJ) report "absolutely false."
In a statement posted on X, the social media platform owned by Musk, she wrote: "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. This is absolutely false (and this was communicated to the media before the report was published)."
Denholm wrote that the board remains "highly confident" in Musk, the 53-year-old billionaire tech executive who has served as the company's chief executive officer since October 2008.
The Wall Street Journal earlier reported, citing unnamed sources, that Tesla board members approached several executive search firms about a month ago to explore potential replacements for Musk.
The report also claimed the board had urged Musk to devote more attention to Tesla and to make that commitment public. Denholm did not address those specific claims.
Musk posted on X that the newspaper was "a discredit to journalism."
The Wall Street Journal acknowledged in its article that it was unaware of the current status of any board-level discussions.
Musk's growing political ambitions have sparked a backlash, with calls for boycotts and protests at Tesla sites worldwide.
He is one of U.S. President Donald Trump's closest advisers, donating more than a quarter of a billion dollars to his presidential campaign.
Trump granted Musk broad freedom to search the federal government to identify apparent inefficiencies and cut wasteful spending, including by conducting mass layoffs of government workers.
Musk announced last month he would significantly step back from his leadership role at the so-called Department of Government Efficiency (DOGE) to refocus on Tesla.
The move may ease tensions with investors, but whether the backlash among car buyers ebbs is still an open question.
Musk’s high-profile presence in Washington and his engagement with far-right political parties in Europe were partly blamed for Tesla's vehicle deliveries falling 13% year-over-year in the first quarter.
