Tesla Amid CEO Succession Rumors - Trump Shows Solidarity With Musk
- ~2.5 Min Read
Elon Musk disputes takeover claims - Trump voices support for him - Tesla rejects rumor of substitution, Trump bolsters his stance
In a surprising turn of events, Tesla has rejected a report by the "Wall Street Journal" suggesting a group of top managers are looking for a new CEO to replace Elon Musk.
The alleged search for a successor, as reported by the "Wall Street Journal," has been called "totally false" by Tesla board chair Robyn Denholm on Musk's social media platform X, on Thursday.
According to Denholm's statement, Musk and the board have confidence in his ability to carry on with the growth plans.
Musk: Misinformation at Play
Musk himself, also the CEO of SpaceX and xAI, and an advisor to Donald Trump, denounced the report as deliberate misinformation on X. He criticized the "Wall Street Journal" for engaging in discredited journalism.
Initially, the newspaper did not alter its stance, stating that the current status of discussions within the board was not known to them. However, the "Wall Street Journal" did report, citing sources familiar with the conversations, that high-ranking Tesla managers had contacted several executive search firms last month. These managers reportedly asked Musk to publicly commit to spending more time on Tesla.
"Tesla and Musk are Synonymous"
Musk, a driving force behind Tesla's rise, has been at the helm for close to two decades. As per industry analyst Dan Ives of Wedbush, "Tesla is Musk and Musk is Tesla."
Despite this, Tesla, once the world's largest electric vehicle manufacturer, has faced turbulence due to an aging product lineup, strong competition from China, and Musk's controversial political activities, which have led to a decline in demand and profits. Musk aims to steer the company towards AI products like robotaxis and humanoid robots.
MuskControversy: Investor Concerns and Government Involvement
Recently, Musk has faced increasing criticism from investors due to his time spent in Washington, aiming to reduce costs for US President Donald Trump. This, along with Musk's political leanings, has contributed to a negative image of the Tesla brand. Protests against Musk and Trump administration policies have led to boycott calls in Europe and the US, targeting Tesla salesrooms.
However, last week, Musk announced that he would largely step back from his role in the capital and focus more on Tesla's affairs.
Trump's show of Support
Trump's support could potentially address a concern for the stock market. However, Musk's behavior in Washington and his right-wing political views have prompted some potential buyers to steer clear of Tesla. Analyst Ives estimates that this could have reduced demand for Tesla vehicles by 15 to 20 percent.
Despite this, Trump offered Musk continued support in the White House, stating, "The vast majority of people in this country respect and value you greatly." He added, "You know you can stay as long as you like," addressing Musk. However, Musk might prioritize returning to his cars.
Trump also criticized those who have disparaged Tesla vehicles, stating, "They've bashed my cars, that wasn't very nice," to which Musk replied, "Thank you, your support means a lot."
Reports indicate that Tesla's board has indeed begun exploring potential successors for Elon Musk[1][2], but the situation remains unclear. The impact of Trump's support on these plans is not yet clear.
- Robyn Denholm, Tesla's board chair, labeled as false a report by the Wall Street Journal suggesting a group of top managers are seeking a new CEO for Elon Musk, stating this on Musk's social media platform X.
- Elon Musk, CEO of SpaceX, xAI, and an advisor to Donald Trump, condemned the Wall Street Journal report as deliberate misinformation on X, criticizing the newspaper for engaging in discredited journalism.
- In response to the report, the Wall Street Journal cited sources familiar with the board discussions, stating that high-ranking Tesla managers had contacted several executive search firms last month, asking Musk to publicly commit to spending more time on Tesla.
- If Donald Trump's continued support for Elon Musk addresses a concern for the stock market, potential buyers may be less deterred by Musk's political leanings, which have led to a negative image of the Tesla brand and a potential decline in demand for Tesla vehicles.
- Elon Musk, the driving force behind Tesla's rise and an executive in the technology and automaker industries, has faced controversy due to his political activities, investor concerns, and government involvement.
