Tesla chair dismisses report claiming company’s board is looking to replace CEO Elon Musk

The report comes even as Tesla is going through a turbulent period, with the company’s stock tumbling by 45 per cent this year. In April, the company reported a 71 per cent plunge in first-quarter profits, as per a report by CNN. During this period, Musk has been focusing heavily on the White House’s Department of Government Efficiency (DOGE) initiatives.

As per a CNN report, Musk himself acknowledged the “blowback” from his role at DOGE and said he would begin scaling back his involvement in May on a recent investor call.  “My time allocation to DOGE will drop significantly,” Musk said. “Starting next month, I’ll be allocating far more of my time to Tesla,” he was reported to have said.

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…

— Tesla (@Tesla) May 1, 2025

At a Cabinet meeting Wednesday, US President Donald Trump publicly thanked Musk for his service. “You have been treated unfairly, but the vast majority of people in this country really respect and appreciate you… You’re invited to stay as long as you want,” Trump told Musk.

Musk, wearing a hat over another hat, joked: “Well, Mr. President, you know they say I wear a lot of hats.”

Trump: I love the double hat.

Musk: Let us say I wear a lot of hats. Even my hat has a hat pic.twitter.com/9dGjAyzSwz

— Acyn (@Acyn) April 30, 2025

As per the reports, despite that praise, Trump officials have not always gotten along with Musk— with Treasury Secretary Scott Bessent allegedly getting into a shouting match with the Tesla CEO earlier this month.

Tesla disaster

Musk arguably faces more turmoil at Tesla. The company has seen regular protests at its showrooms and increasing backlash from former fans, including environmentalists. Even before Musk joined Trump’s administration, investors were critical of how little time he was spending at Tesla. His acquisition and overhaul of Twitter (now X), as well as his controversial political stances and posts, have only intensified scrutiny.

Tesla has been also caught in the middle of Trump’s trade war with China. Musk has clashed with top Trump adviser Peter Navarro and failed to win tariff relief for Tesla’s China operations. However, Trump’s recent softening of auto tariffs could benefit Tesla’s US-made vehicles and imported parts.

While Musk has claimed that DOGE was now “established” and no longer needs full-time attention, Tesla’s reputation has taken a hit, with CFO Vaibhav Taneja admitting on the investor call that “unwarranted hostility” and vandalism toward the brand had hurt vehicle deliveries.

Tesla just reported the worst quarterly sales drop in its history, contributing to a massive profit collapse. The company now faces not only financial headwinds but also a reputational crisis driven in part by Musk’s political affiliations.