Tesla’s chairwoman, Robyn Denholm, has refuted reports suggesting the board sought a new CEO to replace Elon Musk, marking the only significant change in years.
Elon Musk offered his thoughts on the report, adding further insight.
According to a recent Wall Street Journal report, Tesla’s board was reportedly considering hiring an executive search firm to potentially replace Elon Musk as CEO, among other issues, including pressuring Musk to devote more time to the company.
If the report is accurate, this would mark the first instance where the board has held Elon Musk accountable since his appointment to lead Tesla, despite holding a minority stake in the company.
They have consistently supported his transfer decisions, sanctioned him with a CEO compensation package worth $55 billion and remained silent when he implicitly threatened to withhold AI development at Tesla unless granted greater control, or vowed to terminate the entire charging team as an example.
According to records, Tesla’s third-largest individual shareholder, following Elon Musk, Leo KoGuan, stated last year that he was unable to convey his concerns about Musk to the board.
Recently, however, they have failed to address the protests at Tesla stores and product boycotts, linked to Musk’s political activism, sparking widespread discontent among a significant portion of the population and Tesla’s customer base, leaving many questioning his leadership.
As a direct result, Tesla’s gross revenue is plummeting; yet, it wasn’t until the Wall Street Journal report that the board even hinted at considering holding accountable the company’s top executives for this decline.
Tesla disavowed the report through an official statement bearing the signature of Chairwoman Robyn Denholm.
A recent media report has incorrectly stated that the Tesla Board of Directors has reached out to recruitment agencies to initiate a CEO succession process at the company. This assertion is utterly debunked and had already been disclosed to the press prior to the release of the findings. The CEO of Tesla is Elon Musk, and the board confidently entrusts him to drive the company’s exciting development plans forward with unwavering assurance.
Musk underscored the claim, observing that.
The publication of a misleading article by The Wall Street Journal is a serious breach of journalistic ethics. It’s unacceptable for the newspaper to disseminate false information without providing an opportunity for Tesla’s board of directors to explicitly refute the claims.
While some may argue that Tesla and Elon Musk have a history of denying reports that later proved accurate.
The Wall Street Journal reportedly contacted both Elon Musk and Tesla before publication, but did not receive a response from either party.
Electrek’s Take
It’s unexpectedly amusing that, at the end of the day, the board has been caught red-handed in its own game, prompting a hasty denial. The responsibility to plan for CEO succession falls squarely on the shoulders of the board. As an entrepreneur with multiple passions, Musk’s scattered focus poses a risk to the stability of Tesla.
However: “hey! We’re not seeking a replacement CEO at this time, nor do we wish to insinuate that our boardroom is subservient to Elon Musk’s whims.
While initial skepticism arose upon reading the WSJ report’s anonymous sources, presumably affiliated with an unselected government agency and a few Tesla traders, it seems reasonable to prioritize their perspectives over those of Tesla and its CEO Elon Musk in this instance.
Despite earlier claims that they had personally contacted every individual, a recent reversal suggests otherwise. It’s normal to feel a sense of disappointment when something that was expected to happen doesn’t materialize as planned. As there’s no dedicated press team at Tesla, it’s unlikely that they would respond promptly or extensively.
It’s possible that the board may explore using Elon Musk as a bargaining chip to secure his commitment to Tesla, potentially even reconsidering his role in the company.
Your entire premise is utterly absurd. Trying to coax Elon Musk into dedicating more hours to Tesla’s operations may actually undermine efforts to revitalize the company.
Here is the rewritten text:
Let’s be candid – had any chief executive officer from another major automaker faced the situation I’m about to describe, they would have been held accountable and likely terminated long ago.
- Despite a five-year hiatus from introducing a new model, the company’s latest attempt at innovation has ended in disappointment, with the new automobile failing to generate significant interest or revenue.
- Quickly declining gross sales
- Quickly declining gross margins
- Massive demonstrations and consumer-led divestment have ensued due to the company’s CEO’s thoughtless foray into political activism.
- The CEO’s earlier declaration of deploying full self-driving hardware in hundreds of thousands of vehicles was a premature boast, as it would take at least six years to correct the company’s overambitious claims.
The notion that any type of employee is terminable is abhorrent, yet Elon Musk continues to accumulate them at an alarming rate while the board members reap the financial rewards from their stock option decisions, raking in hundreds of thousands.
