Tesla has officially denied reports in the Wall Street Journal (WSJ) that its board is trying to find a new CEO to replace current CEO Elon Musk. But that hasn’t helped the automaker’s slumping shares recover.
Image source: tesla.com
Earlier, WSJ reported, citing informed sources, that Tesla board members had reached out to several executive search firms to develop a formal process for finding a new CEO. This caused the company’s shares to fall by 3%. Tesla Board Chair Robyn Denholm posted a message on the social network X that the information was categorically untrue.
«Today, a media outlet reported falsely that Tesla’s board of directors had contacted recruiting agencies to begin a search for a CEO. This is absolutely false (and was reported to the outlet prior to publication). Tesla’s CEO is Elon Musk, and the board has full confidence in his ability to continue to execute on his incredible growth plan,” reads a statement signed by Ms. Denholm.
Image source: x.com/Tesla
The information came after Tesla published its quarterly financial report, which showed a decline in both sales and profits. Musk admitted that the company’s stock price could have been triggered by his work in the US presidential administration. The businessman promised that starting in May he would devote only “one or two days” a week to the government agency called DOGE.
Tesla’s total revenue for the past quarter fell by 9% year-on-year to $19.34 billion — analysts had forecast $21.11 billion. In the automotive segment, revenue fell by 20% year-on-year to $14 billion, because the company needed to update lines at four factories to begin production of the updated version of the Model Y. Tesla’s net profit fell by 71% to $409 million, or $0.12 per share — a year earlier, it was $1.39 billion and $0.41, respectively. Tesla shares have fallen more than 30% since the beginning of the year.