Tesla’s board has made headlines by denying a recent Wall Street Journal report suggesting they are actively searching for a new CEO to replace Elon Musk. The report, which surfaced on April 30, 2025, indicated that the company’s board was concerned about Musk’s increasing political involvement and Tesla’s declining sales performance. Despite this, Tesla’s chairperson, Robyn Denholm, quickly dismissed the claims, calling the report “absolutely false” and reaffirming the board’s confidence in Musk’s leadership.
However, recent financial results have raised eyebrows. Tesla’s profits dropped a staggering 71% in the first quarter of 2025 compared to the same period in 2024, with the company reporting just $409 million in earnings. This decline is attributed to several factors, including falling vehicle sales, reduced pricing, and factory shutdowns.
Musk’s political commitments have also been a topic of discussion, particularly his involvement in the Department of Government Efficiency (DOGE) under the Trump administration. This role, which has failed to generate the anticipated federal savings, has led to concerns about Musk’s divided focus between his various ventures, including Tesla.
In light of these challenges, Musk has decided to reduce his DOGE-related activities, planning to scale back his involvement to just one or two days a week starting in May. This move is seen as an effort to refocus his attention on Tesla’s operations.
While the Tesla board has denied the reports of an ongoing search for a new CEO, the situation remains dynamic, and investors are closely monitoring any shifts in the company’s leadership and strategy.
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