Tesla CEO Elon Musk has engaged in a public rebuke of a Wall Street Journal (WSJ) article that suggested the electric car company's board was actively searching for his successor. The WSJ report, citing unnamed sources, indicated growing board dissatisfaction with Musk's performance and a potential quest for new leadership amidst Tesla's recent financial challenges. However, Musk quickly labeled the report as "deliberately false," accusing the WSJ of ethical misconduct.
Tensions rose as Musk's response to the allegations was both prompt and vehement. He took to the media to express his outrage, emphasizing what he deemed an "extremely bad breach of ethics" by the WSJ. Musk's counterclaims were supported by Tesla's board chair, Robyn Denholm, who firmly denied the report's accuracy, reinforcing that Musk is still the CEO and that the board has full confidence in his leadership capabilities.
The controversial WSJ article suggested that the dissatisfaction stemmed from Musk's political engagements and Tesla's recent financial slump, indicating a 9 percent decrease in quarterly revenue and a 20 percent drop in automotive sales in critical markets such as California, China, and Germany. It claimed that discussions for Musk's replacement had been underway for over a month, with recruitment firms purportedly being contacted by the board.
Musk was unequivocal in his response, asserting that no CEO search had been initiated and reaffirming his commitment to Tesla. The entrepreneur, known for juggling multiple enterprises, also announced plans to "allocate far more of my time" to Tesla starting in May. Despite these assurances, the WSJ report left an air of uncertainty over the future of Tesla's leadership.
The situation spotlights the intense scrutiny on both Musk's management style and his highly publicized political involvements. While the WSJ article has stirred speculation and debate, Musk's staunch defense suggests that he has no plans to relinquish his role at Tesla's helm.