The chair of Tesla’s board of administrators denied a report that the corporate had begun to search for a substitute for Elon Musk, the chief government who has been spending a lot of his time working for President Trump whereas the automaker’s gross sales and income plummet.
Robyn Denholm, who has led the board for greater than six years, stated on X that the report in The Wall Avenue Journal was “completely false.”
“The CEO of Tesla is Elon Musk and the board is very assured in his potential to proceed executing on the thrilling progress plan forward,” Ms. Denholm stated on Tesla’s account on X, the social media agency owned by Mr. Musk.
The Journal reported late Wednesday that, a few month in the past, the Tesla board had contacted government search corporations to assist search for Mr. Musk’s substitute, citing “individuals aware of the matter.”
After the corporate reported a 71 % drop in quarterly revenue final week, Mr. Musk promised to spend more time at Tesla and fewer time in Washington. He stated that he would spend one or two days every week on administration work.
Mr. Musk’s absence from Tesla whereas he oversaw Mr. Trump’s efforts to slash authorities spending and lower federal authorities jobs has change into a sore level with buyers. Mr. Musk’s involvement with the administration and with right-wing causes in Europe has prompted protests at Tesla dealerships and is partly accountable for a steep drop in gross sales. Electrical automobile patrons are usually liberals or centrists.
Tesla’s income fell 9 % within the first quarter of the yr, to $19.3 billion, the corporate reported final week.
The automaker has misplaced market share in the US, China and Europe as rivals like BYD, Common Motors, Volkswagen and different firms introduce dozens of electrical fashions. Analysts have faulted Tesla for failing to broaden its lineup past two major vehicles.
The Mannequin Y sport utility automobile and the Mannequin 3 sedan account for a overwhelming majority of Tesla’s gross sales. The Cybertruck, Tesla’s latest automobile, has not offered in addition to Mr. Musk stated it could.
