Elon Musk To Step Down As Tesla CEO? See His Explosive Reaction

Elon Musk has rejected a report by the Wall Street Journal (WSJ) that claims Tesla's board of directors has initiated a search for a new chief executive officer. The billionaire entrepreneur, who has led Tesla for nearly two decades, called the report "deliberately false" and accused the newspaper of a breach of journalistic ethics.

"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," Mr Musk posted on his social media platform X, formerly known as Twitter.

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

The WSJ report, citing unnamed sources said to be familiar with internal discussions, alleged that Tesla's board had contacted executive search firms to explore succession options. According to the report, the purported effort was prompted by concerns over Mr Musk's increasing time in Washington, his growing political involvement, and a sharp decline in Tesla's financial performance.

"WSJ is a discredit to journalism," Mr Musk wrote in a subsequent post. 

Shortly after the report was published, Tesla's chair of the board, Robyn Denholm, issued a denial.

"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," Ms Denholm said in a statement. "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."

Despite the denials, the Wall Street Journal article offered a detailed account of what it described as mounting tensions within Tesla's leadership. It alleged that board members had become concerned about Mr Musk's reduced focus on the company amid declining sales, falling profits, and controversial political entanglements, particularly his ties to US President Donald Trump and a new role in Washington.

According to the WSJ, the Tesla board had begun narrowing in on a major executive search firm to consider possible successors, although it admitted that the current status of any such process was unclear and that it could not confirm whether Mr Musk was aware of these discussions.

The report further claimed that during a meeting with the board, Musk did not push back when asked to publicly commit more time to Tesla. The article tied his political activities - including his position as head of the Department of Government Efficiency under the Trump administration - to a decline in Tesla's public image and stock price.

Tesla's first-quarter profit reportedly plunged by 71 per cent, and the company's share price fell from a December 2024 peak of $1.5 trillion in market value to approximately $900 billion. In the face of these developments, Mr Musk reportedly told investors during an earnings call that he planned to return his focus to Tesla starting the following month.

The WSJ also reported that Mr Musk's political alignment with President Trump had triggered internal anxiety within Tesla and led to challenges, especially in key markets like California, Germany, and China. The article quoted unnamed employees and executives who expressed concerns about Mr Musk's leadership, his availability, and the impact of his politics on Tesla's workforce and customer base.