Tesla has firmly denied a media report suggesting its board is actively seeking a replacement for CEO Elon Musk, dismissing the claim as entirely unfounded.
The report, which cited unnamed sources, alleged that Tesla’s board had approached executive search firms to begin a formal CEO search process. The news briefly rattled investors, causing Tesla shares to drop as much as 3% in overnight trading on Robinhood before stabilizing in Thursday’s premarket session.
Tesla Chair Robyn Denholm swiftly debunked the report on X (formerly Twitter), describing it as “absolutely false.”
“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,” Denholm posted.
“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”
The denial comes amid growing concerns over Tesla’s financial performance. In the first quarter of 2025, Tesla reported a 9% year-over-year drop in total revenue, landing at $19.34 billion—well below the $21.11 billion analysts had projected, according to LSEG data.
Revenue from Tesla’s core automotive segment fell 20% to $14 billion, attributed to production line upgrades for a refreshed Model Y SUV, lower average selling prices, and increased sales incentives. Net income plummeted 71% to $409 million, or 12 cents per share, compared to $1.39 billion, or 41 cents, a year earlier.
Adding to investor uncertainty, Elon Musk recently acknowledged that his close ties with the Trump administration could be negatively impacting Tesla’s stock.
Musk announced on a recent earnings call that he plans to dedicate just “a day or two per week” to Tesla while he assumes duties at the newly formed Department of Government Efficiency in May.
Tesla shares have dropped over 30% since the beginning of the year, driven by falling profits, disappointing deliveries, and investor unease over Musk’s divided focus.