Tesla boss Elon Musk on Thursday ferociously rebuked The Wall Street Journal for its report hinting the firm's board was considering possibilities for his next-in-command. Via X (formerly Twitter), Musk termed the article a "deliberately false article" and accused the publication of a serious breach in ethics.
It is a BEYOND POOR EXAMPLE OF ETHICS that the @WSJ would publish a INTENTIONALLY FALSE STORY and omit a clear denunciation in advance by the board of directors at Tesla!" Musk tweeted on the platform.
Tesla board chair Robyn Denholm also dismissed the report earlier in the day, calling it “absolutely false.” She expressed full confidence in Musk, stating that the board believes he is well-positioned to continue delivering on Tesla’s ambitious plans for growth.
The Wall Street Journal, which quoted unnamed sources, alleged that Tesla directors had gone to executive search firms about a month ago — at what it had termed a crisis point for the automaker.
The piece posited the outreach took place in light of shareholder dismay over Musk's divided attention, specifically his mounting engagement in cost-cutting projects tied to the US government. It also observed that directors asked Musk to stay more at hand at Tesla, a request that he apparently didn't fight. Although one recruiter firm was allegedly named, how far-reaching the board's planning for succession has been is unknown.
Tesla has also recently been struggling on multiple fronts. Consumer reaction linked with Musk's political activities and government work has been said to impact vehicle sales, drive away long-time customers, and harm brand reputation.
By March, protests had started targeting Tesla's retail stores, cars, and charging stations both in the US and Europe. Meanwhile, the company has been affected by increased operational expenses due to trade tensions escalated during the administration of former President Donald Trump.
In the midst of these developments, Tesla director Denholm has also been under scrutiny for disposing of a large amount of her shares. She has raised about $150 million from such sales since December.
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