Earlier this week, the Wall Street Journal published a report that claimed Tesla board members were on the lookout for a new CEO. Neither Tesla nor Elon Musk commented immediately on the claim when it surfaced on the internet. However, Robyn Denholm, Tesla’s chair, issued an official statement denying the claim. Shares of Tesla went flat in the premarket trading this Thursday after the company denied the claims of the report. If you are someone who wants to know more about WSJ’s claim and Tesla’s denial, this article is for you. It brings you everything you need to know about Tesla denying reports of board members searching for a new CEO.
What Did The WSJ Claim About Tesla And Its Search For A New CEO?
According to the report published in the Wall Street Journal, Tesla board members were on the lookout for a new CEO a month ago. The report cited comments from several sources that were familiar with the discussions. It revealed that Tesla’s board members reached out to many executive search firms to work on a formal process to search for Elon Musk’s successor. The shares of the company witnessed a fall of as low as 3% in overnight trading on the trading platform Robinhood after the news.
Also read: Elon Musk To Be Replaced At Tesla? WSJ Reports Tesla Board Members Are Looking For A New CEO
What Did Robyn Denholm Say About The Claims Of WSJ’s Report?
Robyn Denholm, Tesla’s chair, took over his X account and issued an official statement on behalf of Tesla denying the claim of WSJ’s report. In his statement, he mentioned how there was a media report erroneously claiming that the Tesla board members had contacted recruitment firms to initiate a CEO search for the company. He called the report absolutely false and stated that the Board is highly confident of CEO Elon Musk’s abilities to continue executing the exciting growth plan ahead.
What Did Elon Musk Say About His Involvement In The Trump Administration And The Drop In Tesla’s Sales?
The EV-making company witnessed a significant drop in its sales as well as its profits. The top as well as bottom lines missed the estimates in the first quarter. Elon Musk, while addressing the press after the first quarter financial results, accepted that his involvement with the Trump administration was hurting the stock prices of Tesla. During the earnings call last week, Elon assured me he’d spend far less time on DOGE’s operations starting in May and allocate more of his time to Tesla and its operations.
Tesla Witnesses A Drop In Sales And Profits
According to the reports, Tesla’s total revenue witnessed a fall of 9% year-on-year to hit $19.34 billion in the January-March quarter. The revenue generated from the automotive segment also declined 20% year-on-year to $14 billion. Tesla also blamed the lower average selling prices and sales incentives for dragging the revenue and profit of the company down. The net income of Tesla witnessed a steep fall as low as 71% to $409 million, or 12 cents a share, from $1.39 billion, or 41 cents a year ago. The shares of Tesla also saw a significant fall of 30% from the beginning of 2025.
