Tesla’s board responded to a Wall Street Journal article that claimed the company had considered replacing Elon Musk as chief executive officer. Chair Robyn Denholm denied the report and stated that the board has “high confidence” in Musk’s ability to execute the company’s growth strategy.
The statement comes amid growing investor concerns related to Musk’s prolonged absences, increasing political involvement — particularly his support for former U.S. President Donald Trump — and falling sales and profits.
According to sources cited by Reuters, discussions around Musk’s role are not new, and some executives have previously suggested he delegate day-to-day responsibilities, as he does at SpaceX, where Gwynne Shotwell serves as President and COO. However, Musk has refused to adopt a similar structure at Tesla.
Various analysts agree that replacing Musk would pose a significant challenge. Brian Mulberry, of Zacks Investment Management, rated the difficulty as an “eight or nine” on a ten-point scale.
Gene Munster, partner at Deepwater Asset Management, went further, stating it is “essentially impossible,” highlighting Musk’s personal brand as central to Tesla’s market value.
Financial estimates indicate that a large portion of Tesla’s stock valuation is tied to unfulfilled projects, such as autonomous driving and humanoid robots that Musk has long promised.
Meanwhile, Tesla has been losing market share to competitors like BYD in China, which have overtaken Tesla in the production of low-cost electric vehicles.
At the same time, Tesla’s executive ranks have thinned over the past year. Several senior leaders who opposed the shift away from traditional human-driven vehicles toward robotaxis, robotics, and AI have left the company.
According to three sources, these concerns were presented to the board, which ultimately sided with Musk.
Tesla did not respond to requests for comment. During a recent public appearance, Musk joked about his many roles, wearing two Trump-themed caps and saying, “They say I wear a lot of hats. It’s true.”
Musk currently owns a 13% stake in Tesla, making him the largest shareholder.
Gary Black, from the Future Fund, posted on X that the company lacks internal candidates with the necessary technical, strategic, and execution skills to replace him.
James McRitchie, a private Tesla investor, questioned the board’s independence, citing Musk’s influence over appointments and their unusually high compensation.
He acknowledged the risks of replacing Musk, noting, “A lot of the share price is tied to the love of Elon and having robots do everything for us.”
McRitchie compared Musk to former General Electric CEO Jack Welch, saying, “But when he left, it was a house of cards. I think the same is probably true of Tesla. It’s a good company, but it could be much better and it’s overvalued.”
Mulberry of Zacks stated that Tesla could succeed with or without Musk, emphasizing the importance of execution: “You’ve already got a great range of EVs, you’ve got the robotaxi and full self-driving. Now it’s just about managing it to a point of completion.”
