Tesla Responds: No Plans to Replace Elon Musk Amid Rumors

Tesla is in the spotlight after the company denied a report claiming its board is looking for a new CEO to replace Elon Musk. Shares of Tesla were flat in premarket trading following the news, which suggested that the board had approached executive search firms for this purpose. After the report surfaced, Tesla’s stock briefly dropped by 3%, indicating investor concern.

Tesla’s chair, Robyn Denholm, took to social media to deny the claims, stating that the report is “absolutely false.” She reassured that Elon Musk remains the CEO and the board is confident in his leadership as they pursue growth.

This comes amid a tough time for Tesla. In the first quarter of the year, the company reported a 9% drop in total revenue, bringing it to $19.34 billion. Analysts had predicted $21.11 billion, so the shortfall has raised questions about the company’s direction. Automotive revenue specifically fell by 20% year-on-year, dropping to $14 billion. The company cited lower average selling prices and necessary updates to production lines as contributors to this decline.

Elon Musk acknowledged during a recent earnings call that his work with the Trump administration could be impacting Tesla’s stock price. He plans to spend only a “day or two per week” on his new role in the Department of Government Efficiency starting in May.

To add some context, Tesla’s situation mirrors past challenges in the tech and automotive industries. For instance, in the early 2000s, many tech companies faced significant stock drops due to market changes and shifts in consumer preferences. This historical context highlights that companies often navigate rocky waters before emerging stronger.

As of now, Tesla’s shares have fallen over 30% this year, a figure that has caught the attention of analysts and investors alike. They’re watching closely to see how the company recalibrates its strategies in light of these challenges.

For more detailed insights on Tesla’s performance, you can check reports from trusted financial sources like CNBC.

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