Tesla Leadership Crisis: Denholm Dismisses CEO Replacement Rumors

Tesla Chair Robyn Denholm refuted a Wall Street Journal report claiming the board seeks a new CEO to replace Elon Musk. As Tesla faces challenges, including declining sales and political backlash, Musk plans to devote more time to the company, amid ongoing investor concerns.

Tesla Chair Robyn Denholm on Thursday rejected claims that the electric vehicle giant's board is searching for a new CEO to replace Elon Musk, countering a Wall Street Journal report. Denholm stated the board remains highly confident in Musk's ability to lead Tesla's growth trajectory.

Elon Musk, whose tenure has been clouded by political controversies and diminishing sales, assured his focus would return to Tesla as he steps back from responsibilities within the Trump administration. Nevertheless, shares have slumped, raising anxiety among investors about Tesla's direction and Musk's political associations.

The board reportedly seeks to bolster confidence by potentially adding an independent director. Meanwhile, some directors and executives, including co-founder JB Straubel, engage with investors to reinforce trust that Tesla's future remains secure despite the ongoing turbulence.

(With inputs from agencies.)