Tesla chairwoman, Robyn Denholm, has denied a recent Wall Street Journal report that claimed the company is looking for a successor to Elon Musk.

The report, published on Wednesday, suggested that Tesla’s board reached out to executive search firms in March to consider potential replacements for Musk. The article linked Musk’s controversial political views to the company’s declining sales.

Denholm quickly dismissed these claims on Thursday, calling them “absolutely false” in a post on Tesla’s official X account (formerly Twitter), a platform also owned by Musk. She added that the board had already communicated this to the media before the report appeared.

In her statement, Denholm reiterated the board’s confidence in Musk. She noted that they remain “highly confident in his ability to continue executing the exciting growth plan ahead for Tesla.”

Financial struggles amid controversy

Rumours about Musk’s future at Tesla arise during a challenging period for the company. In April, Tesla reported a 71% drop in profits for the first quarter. Many analysts linked the decline to Musk’s involvement in political matters, such as leading the US Department of Government Efficiency and supporting far-right political movements in Europe.

Tesla’s first-quarter profits didn’t stem from car sales but from carbon credits from the US government. This has raised concerns about the company’s core business.

Musk shifts focus back to Tesla

Musk recently announced he would step back from leading the Department of Government Efficiency and refocus on Tesla. This decision has raised further uncertainty about his future role at the company.

The Wall Street Journal report also mentioned that the board had suggested Musk spend more time on Tesla. Some sources indicated that the search for a potential CEO related to Musk’s reduced involvement with the company. However, Musk did not oppose these discussions.

External factors impact Tesla’s performance

Tesla faces additional challenges from broader political and market factors. Musk’s associations with the Trump administration and his controversial statements have led to protests against the company.

Tesla’s CFO Vaibhav Taneja acknowledged that “vandalism and unwarranted hostility” affected the company’s sales during the first quarter.

Despite these difficulties, it remains unclear whether Musk will step down as CEO. Some sources say he’s concerned a successor might not share his long-term vision for Tesla. Musk’s attention is also divided between Tesla, SpaceX, and X.

Tesla’s future under Musk’s leadership remains uncertain, with ongoing speculation about the company’s direction and Musk’s involvement.