Tesla, Elon Musk deny report firm is looking for new CEO: ‘Deliberately false article'

Core Viewpoint - Tesla and CEO Elon Musk are refuting a report that claimed the company's board is actively searching for a successor, emphasizing their confidence in Musk's leadership despite recent challenges [1][4][5]. Financial Performance - Tesla reported a significant decline in revenue and net income for Q1 2025, with total revenue falling 9% year-over-year to $19.34 billion, missing analyst forecasts of $21.11 billion [6][9]. - Revenue from Tesla's core automotive business dropped 20% to $14 billion, attributed to lower average selling prices, increased sales incentives, and temporary factory shutdowns [8][9]. - Net income plummeted 71% to $409 million, or 12 cents per share, compared to $1.39 billion, or 41 cents per share, during the same period last year [9]. Market Reaction - The report about a potential CEO search led to an immediate reaction from investors, causing Tesla's stock to drop as much as 3% in after-hours trading before partially recovering [2][13]. - Since the beginning of 2025, Tesla shares have decreased by over 30%, reflecting investor concerns regarding the company's margins and Musk's divided focus due to his involvement in other initiatives [11]. Board's Position - Tesla's board chair, Robyn Denholm, publicly denounced the report as false and reiterated the board's confidence in Musk's ability to lead the company [4][5][12]. - Despite the challenges, the board has no current plans to search for a new CEO, signaling stability in leadership for the time being [12].