Tesla chair Robyn Denholm has debunked rumors of the board seeking a replacement for CEO Elon Musk amidst declining sales and backlash over his ties with US President Donald Trump. Denholm took to social media to clarify that the board has full confidence in Musk’s ability to lead the company.
The Wall Street Journal had reported that the board was in talks with recruitment firms to find a new CEO due to concerns about Musk’s involvement in political matters in Washington. Musk’s appointment as head of the Department of Government Efficiency by Trump had drawn criticism, leading to a negative impact on Tesla’s reputation and sales.
The company’s first-quarter profits plummeted by 71%, causing Tesla to lose its position as the world’s largest EV maker to Chinese competitor BYD. Additionally, Musk’s support for far-right political parties in Europe further affected Tesla’s sales in that region.
In response to investor pressure, Musk announced plans to reduce his involvement in Doge and focus more on Tesla. This decision came after Tesla’s shares dropped by 30% at the beginning of the year, resulting in a significant loss of market value.
Despite the challenges faced by Tesla, any attempt to remove Musk from his position would have far-reaching consequences given his significant role in the company and substantial ownership stake. Musk’s diverse business interests, including SpaceX, Neuralink, and his social media platform X, have also added to his workload.
While Musk has distanced himself from the White House physically, he remains involved in advisory roles remotely. Trump’s chief of staff, Susie Wiles, confirmed that Musk continues to provide input via phone conversations despite not being present at the White House.
Overall, the situation at Tesla remains fluid, with Musk’s leadership under scrutiny amidst ongoing challenges and changes within the company.
