Austin, TX: Tesla stock slumped more than 3% on Wednesday, April 30, hoping reports about the board of directors beginning a search for a possible replacement for CEO, Elon Musk. The Wall Street Journal had first reported, the news heightened investor concern that leadership at the electric vehicle marque will remain fluid.
Market Reacts to Succession News
Tesla closed down 3.38% or $14 on Friday to end the day at $282.16 Stock
A day later, Tesla shares dropped about 1.0% Tuesday to $277.77 due to reports that the Tesla board was… — surprisingly— considering executives’ C-suite around a possible departure for chief Elon Musk last month or so indirect generate any indication of where; it all started with this gist post:
The board’s search concerns outed
The allegations say in part that the board’s supposed inquiry was due to problems with Musk taking over ever larger parts of the administration and whatnot Trump-themed initiatives including the Department of Government Efficiency (DOGE) as well. The apparent -division of focus- added to a Tesla slump marked by falling sales and a significant reduction in quarterly profits reportedly convinced some on the board to start thinking about replacements. Other reports also relayed that board members had told Musk to publicly pledge more time to Tesla.
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DENIAL — Company Chair
Tesla Chair Robyn Denholm however came out against further media speculation on May 1, 2025 (ET).
The Denholm said the story of the board looking to recruitment firms for a replacement for Elon Musk was “utterly factually incorrect”. She then noted that the board is still “100 percent confident” that Musk can both steer the business and deliver on its growth strategy, However, the current situation outlined in this contradictory narrative is left vague yet regarding the alleged succession planning efforts.
