Tesla released an unusual public statement to deny Wall Street Journal claims about its board conducting a search for a new CEO because of Elon Musk’s involvement with the Trump administration’s Department of Government Efficiency (DOGE). Robyn Denholm denied the story while Elon Musk used X to call the Journal “a discredit to journalism.” Tesla’s stock value decreased by 30% in 2025 because showrooms faced protests due to Musk’s role in DOGE which involves advocating for federal workforce reductions.
Wedbush analyst Dan Ives who supports Tesla reduced his price target by 43% because Musk’s political involvement has driven away customers. The Journal reported that executive search firms received contact from the board but it remains unclear if Musk was aware of the search and if the search process remains active. During Tesla’s recent earnings call, Musk said his DOGE time would “drop significantly” from May, prioritizing Tesla. President Trump commended Musk’s work by stating he would return to his car business.
Since 2008 Musk has led the company as CEO while managing SpaceX and other businesses and Tesla’s high valuation (EV-to-EBITDA of 76 versus Mercedes-Benz’s 5) remains directly connected to his leadership. The denial works to maintain investor confidence while Tesla faces backlash and returns its focus to its core electric vehicle business.
