Tesla has strongly denied a Wall Street Journal report claiming its board had launched a search for a new CEO to replace Elon Musk.

In a post on Tesla’s official X account, board chair Robyn Denholm called the WSJ’s claim “absolutely false,” asserting the board remains “highly confident” in Musk’s leadership and growth strategy.

The Journal reported that Tesla directors had contacted executive search firms as recently as March, citing anonymous sources.

Musk also rejected the report, calling it a “deliberately false article” and a “bad breach of ethics.”

The Wall Street Journal stood by its reporting, saying Tesla was offered a chance to comment before publication but declined.

The report fueled ongoing speculation about Musk’s future at Tesla amid criticism of his time spent away from the company while leading the White House’s Department of Government Efficiency (DOGE).

Musk announced last week he would scale back his government role to refocus on Tesla.

The electric vehicle maker has faced growing challenges in 2025, including a 71% drop in quarterly profits, falling sales in China, and brand backlash linked to Musk’s political affiliations.

Tesla stock had fallen 45% this year before a modest rebound.

Investor concern over leadership stability has mounted since Musk acquired social media platform X and remained heavily involved in SpaceX and government affairs.

Despite the turmoil, analysts at Wedbush Securities said they believe Musk will remain Tesla CEO “for at least five years.”

Tesla’s board previously justified Musk’s massive compensation package — now tied up in legal battles — as essential to keeping him focused on the company’s long-term goals.

The controversy comes as Tesla faces both external market pressures and internal questions about its future direction under Musk’s leadership.