(Bloomberg) – Tesla’s chairman (), Robyn Deholm, denied a report that stated that board members started a search for a new executive director to succeed Elon Musk, saying that directors are “highly confident” in their skills.
Wall Street Journal reported on Wednesday that unidentified members of the Tesla Council had contacted executive recruitment companies for about a month, citing people familiar with the discussions. Denholm called the story “absolutely false.”
“Tesla’s CEO is Elon Musk and the advice is highly confident in his ability to continue running the exciting growth plan ahead,” Donholm said through the company’s account.
Tesla vehicle sales and stock price fell this year, while Musk devoted a significant time to work to US President Donald Trump. Although the CEO has reassured some investors last week, others are worried that he is causing lasting damage to the Tesla brand.
The Association of French Industry Plateform Automobile has offered new indications of continuous challenges for the company in Europe, reporting that Tesla registered only 863 new vehicles in April. To the .
Tesla’s shares rose 1% at 8 am on Thursday at New York, before the regular negotiation on the stock market. The shares fell 41% over the historical record reached in mid -December.
Continues after advertising
Tesla’s board members recently said 53, that he needed to spend more time at Tesla and publicly announce that he would do it, according to Journal. Musk did not oppose, the newspaper said, citing unidentified people familiar with the meeting.
Musk acknowledged during Tesla’s results conference conference last week that there was “a negative reaction” in relation to his time ahead of the so -called government efficiency department, or Doge, in the acronym in English. After defending this work and claiming, without evidence, that protests against him are organized and paid by unidentified fraudsters, he said it was time to return to Tesla.
“From next month, I will allocate much more of my time for Tesla, now that the main work of establishing the government efficiency department is completed,” he said.
Continues after advertising
Musk’s detractors began to direct their criticisms to Tesla’s showrooms, vehicles, and loading stations in the US and Europe shortly after Trump returned to the White House. At the same time, the company has been involved in Trump’s trade war, with executives warning that tariffs will be particularly disruptive to its energy business, which depends on battery cells from China.
The board’s reported approach to recruitment companies will serve as a “warning” for Musk, said Wedbush Securities analyst Dan Ives, before Deholm’s statement. Musk will remain as Tesla’s CEO for at least five more years, predicted the analyst.
“We would be surprised if the advice was still following this search path to this day,” Ives said in a note.
Continues after advertising
Other investors played the Wall Street Journal report differently.
Ross Gerber, co -founder and CEO of Gerber Kawasaki Wealth and Investment Management, said in an interview with Bloomberg Television that the advice may be offering Musk a way out, allowing him to leave CEO and focus more on artificial intelligence. Musk could become Tesla’s chairman, he said.
“I see this as a way of leaving Tesla elegantly,” said Gerber. “With Robyn Denholm selling all his shares as chairman of the board, I think she’s leaving. He becomes president and they find a new CEO.”
Continues after advertising
Donholm revealed earlier this week the sale of another $ 32 million of his shares and has sold about $ 150 million in shares since December.
Gerber said that JB Straubel, co -founder of Tesla and board director, would be a natural replacement. “Considering that JB Straubel is talking to many of these investors, he is probably the most appropriate person to take on this role, even if he is not an external player,” said Gerber. “An internal player makes much more sense.”
Even if Musk left his position, there is no quick solution to Tesla’s problems, Gerber said, adding that he continues to sell actions from the electric vehicle manufacturer.
“Tesla is in a very vulnerable position she has created herself and is not as simple as Elon walks away,” said Gerber. “I am still puzzled by the depth of the problem they created. I have never seen a business managed like this, never.”
© 2025 Bloomberg L.P.
