Elon Musk Fires Back as Tesla Slams 'False' CEO Exit Rumours, What Really Happened?

Muskaan Kapoor

01 May 2025 — 3 min read

Elon Musk Denies CEO Exit Rumours, Tesla Stands Firm in Support

Tesla Inc. has firmly denied media reports claiming its board is looking to replace Elon Musk as CEO. The controversy began on April 30, 2025, after The Wall Street Journal (WSJ) published an article suggesting Tesla had quietly initiated a search for Musk’s successor amid concerns about his divided attention and the company’s recent financial challenges.

A Report That Sparked a Storm

The WSJ article, citing unnamed sources familiar with internal discussions, claimed that Tesla’s board had reached out to executive recruitment firms. The report attributed this alleged move to several factors, including Musk’s increasing political involvement, particularly his role in the Trump administration’s newly formed “Department of Government Efficiency” (DOGE)—and Tesla’s sharp 71% drop in first-quarter profits for 2025.

It also noted growing investor unease, as Tesla’s stock has declined roughly 30% since the beginning of the year. According to the article, the board was discreetly exploring leadership options in response to these developments.

Tesla and Musk Respond Swiftly

Within hours of the article’s publication, Tesla issued an official denial via its X (formerly Twitter) account. The statement, attributed to Chairwoman Robyn Denholm, read:

“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.
This is absolutely false (and this was communicated to the media before the report was published).
The CEO of Tesla is Elon Musk, and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”

Elon Musk also responded directly and forcefully via X, writing:

“It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!”

He followed up with a blunt statement:

“WSJ is a discredit to journalism.”

It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
— Elon Musk (@elonmusk) May 1, 2025

Investor Concerns and Leadership Focus

While Tesla and Musk have denied any active CEO search, the WSJ report brought renewed focus to concerns about Musk’s level of engagement with Tesla. His leadership roles across multiple ventures, including X, SpaceX, Neuralink, and The Boring Company, have led to ongoing speculation about his bandwidth.

These concerns have grown in light of Tesla’s recent financial results. The company reported a 71% year-on-year decline in quarterly profits and a 9% drop in revenue, with earnings falling from $21.3 billion to $19.3 billion in the January–March period. Musk has since reassured investors during Tesla’s latest earnings call that he plans to “refocus” on the company, but questions remain about how much time and attention he can actually devote to Tesla.

A Broader Context

This isn’t the first time speculation around Musk’s future at Tesla has emerged. As the head of several companies, questions around his long-term commitment to Tesla have remained. Any suggestion of succession, real or speculative, carries major implications for Tesla’s stock and long-term strategy, given how closely Musk’s leadership is tied to investor confidence.

Despite recent financial setbacks, Tesla continues to expand its EV business and remains a global leader in the electric mobility space. As of now, there is no official indication from the company that a leadership transition is being planned.

Final Thoughts

This situation shows how sensitive the relationship is between media reports, company leadership, and public trust. While Tesla has clearly denied any search for a new CEO, questions about Musk’s focus and the company’s financial future remain.

For now, Elon Musk continues to lead Tesla with full support from the board. Whether that’s enough to ease investor concerns may depend on how the company performs next, and how clearly Musk proves he’s still fully committed.