‘Better off’: Claims Tesla looked to replace Elon Musk
Elon Musk has furiously denied reports that the board of Tesla became so concerned about his lack of focus on the firm it looked to find a new CEO.
On the Road
Don't miss out on the headlines from On the Road. Followed categories will be added to My News.
The board of Tesla reportedly made plans to dump CEO Elon Musk and put feelers out for a new boss as the car maker’s image and profits slumped due to Mr Musk’s role in the Trump White House.
US newspaper the Wall Street Journalclaimed that board members of the electric vehicle manufacturer had gone so far as to sound out several executive search firms as frustration with Mr Musk and his lack of focus on Tesla mounted.
Tesla has denied the claims and Mr Musk said the story was “deliberately false”.
Mr Musk funnelled almost $400 million into Donald Trump’s presidential campaign.
Since the start of the year, and Mr Musk’s high profile role leading the so-called Department of Government Efficiency, or DOGE, Tesla has had a tortuous time.
Mr Musk’s closeness to Mr Trump has led to boycotts and protests at dealerships and plunging sales in some markets.
Yet, Mr Musk’s presence at the White House has not prevented the firm from being hammered by tariffs.
That’s alongside concerns about the Tesla model line-up, the high price of its vehicles and quality concerns with its futuristic looking Cyber Truck.
The company’s first quarter profits fell by 71 per cent.
Better off
The newspaper reported that some senior staff at Tesla had deep concerns about how Mr Musk’s actions were reflecting on the business.
Tesla executive Eliah Gilfenbaum was reported as saying it was getting more challenging to hire and retain talent.
He added the company would be better off if Musk resigned but that was unlikely to happen and staff needed to put the boss’ views to one side and continue working.
Shortly after those claimed comments came to light, Mr Gilfenbaum left the firm.
The Wall Street Journal also said a board member had remarked that Mr Musk was not as well prepared when dealing with Tesla issues.
Last month, Mr Musk and the White House signalled the SpaceX boss would reduce his commitment to DOGE and return to Tesla.
His appointment to the initiative was time limited while many at Tesla wanted Mr Musk to either dedicate more time to the car company or walk away.
It was around the same time, the Wall Street Journal reported, that the Tesla board asked executive recruitment firms to begin work on a formal process to find a new chief executive. Those moves were advanced enough that the board chose a single head hunting firm for the search.
Mr Musk, who owns 13 per cent of Tesla, appeared to get the message, telling investors that “Starting next month, I’ll be allocating far more of my time to Tesla”.
The threat to remove Mr Musk now appears to have dissipated.
Tesla, Musk deny reports
Both Tesla and its CEO have hit back at the reports.
“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!” wrote Mr Musk on X.
Tesla board chair Robyn Denholm also chimed in.
“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,” he stated.
“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.”
However, the Wall Street Journal has insisted that it gave ample time for Tesla and Mr Musk to respond.
“We stand by our reporting,” the paper told theNew York Post.
“Tesla was given the opportunity to provide a statement before publication, which they did not do.”
Originally published as ‘Better off’: Claims Tesla looked to replace Elon Musk
Ferrari launches ‘most extreme’ car yet
Ferrari’s latest and greatest supercar promises to take performance to the next level but you’ll have to jump through serious hoops to get one.
Big change on one state’s roads
Drivers and riders will receive a warning before a new initiative is adopted to try to reduce the death toll on NSW roads.