Tesla Denies Rumors of Elon Musk’s Firing as CEO

Tesla Denies Rumors of Elon Musk’s Firing as CEO

Recent reports sparked a frenzy when The Wall Street Journal claimed Tesla’s board was searching for a new CEO to replace Elon Musk.

The story, published on April 30, 2025, suggested the board contacted executive search firms due to Tesla’s falling sales and Musk’s focus on his White House role.

However, Tesla’s Chair, Robyn Denholm, and Musk himself quickly dismissed the claims.

Denholm called the report “absolutely false” in a statement on X, affirming Musk’s position as CEO and the board’s confidence in his leadership.

Musk also, denied any plans to step down. The news caused a stir, with Tesla’s stock dropping 3% after hours, reflecting investor concerns about leadership stability.

The rumors come at a challenging time for Tesla. The company reported a 71% profit drop in the first quarter of 2025, with car sales revenue falling 20%.

Protests against Musk’s role in the Trump administration’s Department of Government Efficiency (DOGE) have hurt Tesla’s brand. Some shareholders worry Musk’s divided attention—juggling Tesla, SpaceX, and government work has impacted performance.

Despite this, Denholm emphasized Musk’s vision for Tesla’s growth, including plans for affordable electric vehicles and autonomous robotaxis by mid-2025. The board’s swift denial suggests they see Musk as central to Tesla’s future, but the speculation highlights tensions over his leadership style and priorities.

Is Elon Musk Really Going to Be Fired?

No evidence supports claims that Musk will be fired. The Wall Street Journal’s report relied on unnamed sources, and Tesla’s leadership quickly debunked it.

Musk remains a dominant figure at Tesla, not just as CEO but as a cultural and strategic force. His vision for autonomous driving and AI has shaped Tesla’s direction, even amid recent setbacks. Some shareholders have criticized Musk, with one top investor reportedly urging him to step down for damaging Tesla’s reputation. However, these calls appear to be a minority view.

Musk’s influence and track record make his ousting unlikely in the near term. The board’s public backing further solidifies his position, though continued financial struggles could fuel more scrutiny.

Who Owns Shares in Tesla?

Tesla has millions of shareholders, from individual investors to large institutions. As of May 2025, Musk himself holds about 13% of Tesla’s shares, making him the largest single shareholder.

Institutional investors, like Vanguard and BlackRock, own roughly 45% combined, while retail investors and smaller funds hold the rest.

Exact numbers of individual shareholders are hard to pin down, but Tesla’s popularity among everyday investors is significant, with many buying through platforms like Robinhood.

The diverse shareholder base means no single group can easily control decisions, but Musk’s substantial stake gives him considerable influence.

Any move to fire him would need strong support from major shareholders, which seems unlikely given his grip on the company’s direction.

Is It Possible to Fire Elon Musk?

Firing Musk is technically possible but highly improbable. As CEO, he serves at the board’s discretion, but his 13% ownership and role as Tesla’s founder give him immense leverage.

The board, which includes Musk’s allies, would need a compelling reason—like sustained financial failure or misconduct to justify such a move. Even then, replacing Musk poses challenges.

Experts say a new CEO would demand significant concessions, like more independent board members or hefty severance guarantees. Musk’s unique vision and public persona make him hard to replace, and investors might react negatively to his exit, fearing a loss of innovation. For now, the board’s firm denial of the rumors signals their commitment to Musk, despite Tesla’s struggles.

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