Tesla Stock Speeds Off on Elon Musk’s Sack denial
Robyn Denholm, Tesla's chair, disputed the report on the social media platform X, stating it was "completely baseless."
Quick overview
- Tesla's stock remained stable in pre-market trading after the company denied a report about a CEO succession plan.
- The Wall Street Journal claimed that Tesla's board was in talks with executive search firms, which was refuted by chair Robyn Denholm as 'completely baseless.'
- Following the report, Tesla's shares initially dropped over 3% but later recovered some losses.
- Elon Musk emphasized the board's confidence in his leadership amid recent declines in sales and earnings.
Tesla remained unchanged during pre-market trading on Thursday, following the company’s refutation of a Wall Street Journal report suggesting that its board was seeking a successor for Elon Musk as CEO.
It was based on comments from sources acquainted with the discussions, which asserted that Tesla’s board members had contacted numerous executive search firms to establish a formal process for identifying the company’s future CEO.
In the aftermath of the news, Tesla’s shares posted over 3% drop before recovering some of those losses.
Tesla’s chair, Robyn Denholm, disputed the report on the social media platform X, stating it was “completely baseless.”This morning, a misleading report emerged, claiming that the Tesla Board had contacted recruitment agencies to commence a CEO search within the company,” she wrote.
“This is untrue, and the media were informed of this before the report’s publication.” Elon Musk further highlighted that the board has complete faith in his ability to carry out the company’s ambitious growth plan.
It follows a steep decline in sales and earnings for the massive electric car company, whose top and bottom lines fell short of forecasts in the first quarter.
Musk acknowledged that the automaker’s stock price may suffer because of his ties to the Trump administration. During a Tesla earnings call last week, the multibillionaire stated that starting in May, he will only operate the so-called Department of Government Efficiency for a “day or two per week.”.
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