Tesla stock price falls over 3% amid reports that board opened search for CEO to succeed Elon Musk

Tesla stock price declined more than 3% on Wednesday after a report that the company’s board had initiated a search for a potential successor to CEO Elon Musk. Tesla share price ended 3.38% lower at $282.16. In the extended hours, Tesla shares gained 0.13%

According to a Wall Street Journal report citing people familiar with the matter, Tesla board members contacted several executive search firms about a month ago to explore CEO succession options. The discussions were reportedly prompted by concerns over Musk’s increasing involvement with the Trump administration.

The current status of the board’s succession planning remains unclear, the report said.

The report noted that Tesla board members met with Musk and urged him to publicly commit to dedicating more time to the company. However, it remains uncertain whether Musk—who also sits on the board—was aware of the succession planning efforts or if his renewed commitment to Tesla has influenced those discussions.

Musk, Tesla Deny Report

Tesla CEO Elon Musk has strongly denied the Wall Street Journal report, calling the article a “breach of ethics”, and accusing the publication of deliberately publishing false information.

“It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!,” Elon Musk tweeted.

Tesla Chairwoman Robyn Denholm also refuted the report, posting on Tesla’s official X account that the claims were “absolutely false.”

“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead,” the statement read.

Last week, Musk stated that he would significantly reduce the time spent on his role within the Trump administration to refocus on leading his portfolio of companies, including Tesla.

His role as head of the Department of Government Efficiency (DOGE)—an entity created to reduce federal employment—has drawn criticism from investors, particularly amid declining sales of Tesla’s aging electric vehicle lineup.

Additionally, Musk’s public alignment with far-right political movements in Europe has led to protests and acts of vandalism targeting Tesla showrooms and charging stations across the US and Europe.

Tesla Stock Price Trend

Tesla stock price has gained 9% over the past month, offering some relief after a challenging start to 2025, during which the stock has dropped 25%. Despite the year-to-date decline, Tesla remains a strong long-term performer. Over the past year, Tesla share price has surged 54%, and over a five-year period, it has delivered an impressive return of 500%.

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