Elon Musk will not be replaced as CEO by the board, according to the chair of Tesla

The chair of Tesla has reaffirmed support for Elon Musk’s leadership, saying the board is not looking for a new CEO.

Robyn Denholm, the chair of Tesla, vehemently refuted a Wall Street Journal article on Thursday that said the board of the business had started looking for a new CEO to succeed Elon Musk.

According to people familiar with the situation, the Journal said on Wednesday that Tesla board members had reached out to a number of executive search firms approximately a month ago in order to look into possible Musk successors.

Denholm described the allegation as “completely untrue” in a post on X, adding that the board was still “extremely confident” in Musk’s ability to lead and execute Tesla’s aggressive expansion plans. Musk also referred to the story as a “deliberately false” piece about X.

Musk recently declared that he will concentrate more on managing Tesla and drastically cut back on his interaction with the Trump administration. He has spearheaded measures to reduce federal positions in his capacity as head of the Department of Government Efficiency (DOGE), which has caused controversy and investor anxiety, especially as Tesla deals with declining sales and heightened competition.

Protests and vandalism targeting Tesla dealerships and charging points in the US and Europe have been triggered by Musk’s increasing connection with far-right politicians in Europe.

The Journal claims that Musk was urged to publicly affirm that he would be spending more time on Tesla during a private meeting with some board members. It is still unknown, though, if Musk—who is a board member himself—was aware of any succession talks or if his recent commitment affected any possible plans.

At this critical juncture, Tesla is moving away from its initial goal of creating reasonably priced electric cars and toward a more comprehensive concentration on driverless taxis and humanoid robots. A key component of Tesla’s valuation is Musk’s positioning of the company’s future as an AI and robotics enterprise. After US officials relaxed their restrictions on autonomous vehicle testing last week, the stock jumped.

According to reports, some directors, including JB Straubel, a co-founder of Tesla, have met with significant shareholders to highlight the company’s stability in an attempt to reassure investors.

Activist investors have long criticized Tesla’s board, claiming it lacks independence and has not adequately monitored Musk. Appointed by Musk and a supporter of his contentious remuneration plan, Denholm has faced criticism for her own salary as well as doubts about her capacity to conduct independent monitoring. Denholm herself has denied the accusations, and a representative for the company has defended her compensation as reasonable.

According to a regulatory filing, Denholm sold about $33.7 million worth of Tesla shares in March. According to reports, the eight-member board, which consists of media mogul Rupert Murdoch’s son James Murdoch and Musk’s brother Kimbal Musk, is seeking to name an independent director.