Tesla’s board has firmly rejected a recent Wall Street Journal report suggesting that the company is actively seeking a successor for CEO Elon Musk. The board’s chair, Robyn Denholm, labeled the article as “absolutely false,” emphasizing that Musk retains the board’s full confidence in leading the company’s growth strategy.

The Wall Street Journal article had alleged that Tesla’s board contacted executive search firms amid concerns over declining sales and Musk’s commitment to a federal cost-cutting task force, DOGE. The report caused significant backlash from Musk, who condemned it as a serious ethical breach and deliberately false, asserting that the Tesla board had not confirmed such intentions.

Despite these denials, the controversy has raised questions about Tesla’s leadership amid recent financial challenges. The company reported a 9% year-over-year revenue drop to $19.34 billion and a 71% plunge in net income in Q1 2025. These declines have been attributed to lower vehicle pricing, incentives, and factory shutdowns.

Musk’s involvement in the DOGE initiative, a federal cost-cutting task force, has further complicated matters. His engagement with President Trump’s administration has led to public backlash and concerns about his divided attention between Tesla and his other ventures.

As of now, Tesla’s board maintains its support for Musk, and no official search for a new CEO is underway. However, the ongoing financial challenges and Musk’s political engagements continue to be points of contention among investors and analysts.