Tesla denies reports of CEO search amid financial turmoil
Tesla was reportedly set to begin the search for a new CEO. The board's decision is said to be a result of the company's poor financial performance and controversies surrounding Elon Musk, according to CNBC. However, Tesla Chairperson Robyn Denholm has denied these reports.
Tesla initiated the search for a new CEO, which led to a 3 per cent drop in shares on the Robinhood platform, reports CNBC.
Will Musk lose his position at Tesla? The company responds
Additionally, the "Wall Street Journal" reports that the company's board has reached out to several recruitment firms to find a successor for Elon Musk.
The board's decision is reportedly due to the company's poor financial performance and controversies surrounding Elon Musk.
Tesla Chairperson Robyn Denholm denied that the board was considering replacing CEO Elon Musk, asserting that directors are "highly confident" in his abilities, reports Bloomberg.
"The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead," states part of the company's official announcement.
Elon Musk's activities as a Trump advisor and head of DOGE are deemed highly controversial, according to Bloomberg.
Tesla has faced criticism in Europe and the United States since Musk became a close advisor to Trump and head of DOGE. At times, criticism of Tesla has escalated to vandalism. On Tuesday, the company announced a 71 per cent drop in sales for the first quarter of this year.
Tesla's sales plummet
Sales of Tesla electric cars in the EU fell by 36 per cent in March compared to March 2024, and in the first quarter of this year, they decreased by nearly half year-on-year, reported AFP on Thursday, citing data from the European Automobile Manufacturers' Association (ACEA).
Tesla recently presented lower-than-expected financial results for the first quarter, with automotive industry revenues falling by 20 per cent compared to the previous year.
The company's revenue was $19.34 billion (£14.52 billion) compared to the consensus of $21.11 billion (£15.85 billion). Total revenue fell by 9 per cent from $21.3 billion (£16 billion) a year earlier. Automotive revenue fell by 20 per cent to $14 billion (£10.5 billion) from $17.4 (£13 billion) in the same period last year.
Net profit dropped by 71 per cent to $409 million (£307 million) from $1.39 (£1.04 billion) a year earlier.
Tesla stated that one reason for the decline was the need to update production lines in four vehicle factories to begin manufacturing a refreshed version of the popular Model Y SUV. The company also cited lower average selling prices and sales incentives as factors impacting revenue and profits.
Tesla shares have fallen by 41 per cent since the beginning of 2025, recording the worst quarterly decline since 2022 during the period ending in March.
