Tesla Board Swiftly Denies 'Musk Dismissal' Rumors Amid Criticism of Excessive Loyalty
by Oh Suyon
Published 02 May.2025 10:57(KST)
WSJ Reports "Tesla Board Seeking Successor Due to Poor Performance"
Board Quickly Denies: "Completely False"
"Powerless Board... Strange Relationship Between Musk and Tesla"
There has been criticism that the Tesla board’s swift denial of rumors regarding the dismissal of CEO Elon Musk reflects excessive loyalty to or dependence on Musk. On the surface, the board’s actions appear to be measures to ensure corporate stability and leadership continuity, but some interpret this as evidence of Musk’s overwhelming influence as both Tesla’s leader and major shareholder.
The Wall Street Journal (WSJ) reported on April 30 that the board of the electric vehicle company Tesla had begun searching for a new CEO to replace Musk about a month ago. According to the report, the board considered removing him from the CEO position in response to Tesla’s recent poor performance.
This period coincided with Musk’s appointment as head of the U.S. Government Efficiency Office (DOGE) under the Donald Trump administration, during which he spent most of his time in Washington, D.C., and carried out large-scale workforce restructuring. As Musk devoted more time to political activities at the expense of his primary role, resentment toward him grew, and the company’s performance deteriorated. According to the WSJ, as the sense of crisis within Tesla peaked, the board publicly demanded that Musk “devote more time to Tesla.” After the first quarter earnings announcement, Musk stated, “Starting next month, I will dedicate more time to Tesla,” signaling his intention to focus on management.
Following reports of a possible CEO change at Tesla, board chair Robyn Denholm quickly denied the rumors on the social media platform X (formerly Twitter), stating, “The report is completely false,” and “Elon Musk is Tesla’s CEO, and the board has strong confidence in his ability to continue executing exciting growth going forward.” Musk also dismissed the rumors as a “false article.”
Despite the controversy surrounding Musk’s leadership, Dan Ives, a prominent Tesla bull and managing director at Wedbush Securities, defended Musk the previous day, stating, “Musk should lead Tesla.” He predicted that Musk would remain at Tesla’s helm for at least five more years and argued, “It would be surprising if the board is still pursuing this search path at present.”
Some have pointed to this incident as evidence of Tesla’s skewed governance structure. Bloomberg News commented, “A rational board would take steps to seek a successor if the CEO were running multiple companies, including Tesla competitor xAI, and engaging in political activities that could damage the brand image.” The outlet added, “Denholm breaking her silence to refute the report highlights how powerless the board is and illustrates the peculiar relationship between Musk and Tesla.”
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