Tesla Faces Leadership Rumors Amid Profit Drop

Media reports, especially from the Wall Street Journal, claimed Tesla's board was seeking a new CEO to replace Elon Musk due to a 71% drop in profits in early 2025, sales declines, and controversy over Musk's political involvement and federal government role. Both Musk and Tesla Chair Robyn Denholm have publicly denied any CEO search, maintaining confidence in Musk's leadership. The Wall Street Journal stands by its reporting, saying Tesla was contacted prior to publication. Despite official denials, some sources report internal leadership discussions amid growing investor and executive frustration over Musk's divided focus. Tesla has also experienced boycotts, protests, and hiring challenges linked to Musk's political activities and duties with the Department of Government Efficiency. Musk has recently said he will reduce his government commitments to focus more on Tesla, but speculation about the company's leadership persists.