Elon reacts strongly, denying the report that the Tesla board is considering replacing him as CEO
Musk denies claims Tesla seeks new CEO, calls WSJ report false.
Elon Musk, the CEO of Tesla, reacted vehemently to a report published by the Wall Street Journal which alleged that Tesla's board was actively seeking a successor to replace Musk as the chief executive officer. The report suggested that the board had initiated contacts with several executive search firms to commence a formal process to find a new CEO. In response, Musk took to his platform, X (formerly known as Twitter), to express his displeasure, labeling the article as a breach of journalistic ethics for not including prior board denials.
Tesla's chairperson, Robyn Denholm, quickly moved to quash the rumor, releasing a statement through X, where she characterized the report as entirely false. She affirmed that the board of Tesla has full confidence in Musk's ability to guide the company through its growth plans. Denholm mentioned that the board had already communicated the inaccuracy to the media before the report was published, emphasizing her stance on Musk's ongoing leadership at Tesla.
Musk, adding to Denholm's statement, retweeted her post with his own commentary, vehemently criticizing the Wall Street Journal’s decision to publish the piece. He accused the publication of knowingly spreading fake news and highlighted the omission of Tesla’s preemptive denial. The Journal, for its part, maintained that attempts were made to contact Musk for comments before the article's release, leaving room for ambiguities in the case.
Beyond Musk’s reaction to media coverage, the context of his leadership has been brought into question due to his involvement in the DOGE initiative with the Trump administration. The initiative aims to reduce government size and cut federal spending, which has been met with public dissatisfaction and has reportedly affected Tesla's global reputation. During the latest earnings call, Tesla reported a significant 70% drop in profits, further exacerbating concerns about Musk's effectiveness in his corporate role. The challenges extend to Tesla’s sales, which are declining, particularly in major markets such as Europe.
The Wall Street Journal's report remains a point of contention with tensions between media outlets and Tesla's administration. It underscores the divide between journalistic pursuits and corporate leadership narratives, prompting extensive discourse on ethical reporting practices. While Musk’s approach to the matter reflects his broader criticisms of the media, the impacts on Tesla, its stockholders, and its market position continue to be monitored closely by analysts and industry observers.
Sources: Gizmodo, Wall Street Journal, Tesla