According to the information provided by the “Wall Street Journal” based on numerous anonymous sources familiar with the case, the management of Tesla contacted in March with many recruitment agencies to start the search process of the new general director, which will replace Elon Musk as the general director of the company. The decision was to be the result of a significant decrease in sales and company profits in the first quarter of this year. In addition, Musk's involvement in politics negatively influenced Tesla's reputation.
“Wall Street Journal”: It is not known if Musk knew about the movement plans
“Wall Street Journal” reports that it is not clear what would be the schedule of moving Musk from power or whether the search will continue to be conducted. The daily also reports that it is not clear whether Musk, who was also a member of the board of Tesla, knew about the search.
Last week, Tesla said that her net profit was reduced by $ 71, reaching $ 409 million, which translates into 12 cents per share. A year earlier, the company recorded $ 1.39 billion. profit, i.e. 41 cents per share.
In response to bad results, Elon Musk announced that he would significantly limit his commitment as the head of the Department of Government Efficiency (Doge) and return to Tesla. The billionaire announced that from May he would “devote much more time” and expected to spend “day or two a week on government matters”.
According to CNBC, in connection with the reports of Tesla's records, they lowered by up to 3 percent. During night transactions on the Robinhood platform, in connection with the information that the company's management began looking for the successor of Elon Musk.
Tesla denies reports. Musk: It's a disgrace
Shortly after the publication of the article by “Wall Street Journal”, official denials from the company and Elon Musk appeared.
“This morning there was incorrect information in the media that the management of Tesla contacted recruitment agencies in order to start the search for the company's general director. This is total untruth (and the media were informed about it before publishing the report)” – reads the company signed by the chairman of the management board of Robyn Denholm. “Elon Musk is the general director of Tesla, and the management is deeply convinced that he will be able to continue the implementation of an exciting development plan,” he added.
Elon Musk himself also referred to the matter. “It is a very serious violation of the ethics that Wall Street Journal intentionally published a false article and did not join him with a clear denial on the part of the board of Tesla!” – he wrote the company CEO on the portal X. “WSJ is a disgrace for journalism,” he added in the next post.
