Since Donald Trump took office for his second term as President of the United States of America, billionaire Elon Musk has been by his side. Despite initial misgivings about one another in years past, Musk quickly became one of Trump’s most ardent supporters during the 2024 campaign. The billionaire poured millions of dollars into campaigning for Trump and was appointed the head of DOGE (the newly invented Department of Government Efficiency) after Trump’s victory.
However, things have gotten complicated for Musk as of late, as his involvement with the Trump administration has harmed his primary business, Tesla. Recently, The Wall Street Journal published a report claiming that the Tesla board was looking to replace Musk as its CEO. Musk responded, calling the article “deliberately false.”
Musk’s Response
“It is an EXTREMELY BAD BREACH OF ETHICS that The Wall Street Journal would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors,” Musk posted on X, the social media platform he owns. He quote-tweeted a message from Tesla chair Robyn Denholm, who also refuted the report.
“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company,” Denholm wrote. “This is absolutely false (and this was communicated to the media before the report was published).”
Denholm added, “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.”
According to the report in question, Tesla investors and board members cited Musk’s lack of attention as concerning. Musk has continued working with the Trump administration to slash the federal workforce and reduce what they see as government waste through DOGE, leaving him little room to focus on Tesla.
Examining the Backlash
Musk fell out of public favor quite violently thanks to DOGE’s attempts to shutter federal agencies and lay off tens of thousands of federal employees. Not only did he oversee these operations, but he also very publicly took ownership of them.
Sources familiar with the matter stated that the automaker’s board of eight reached out to several executive search firms to initiate the process of finding a new CEO, The Wall Street Journal reported. The publication noted that Musk never responded when asked for comment.
Musk’s collaboration with the Trump administration triggered worldwide backlash and protests, leading to boycotts of his vehicles. Last week, Tesla announced that its first-quarter profit was 71% below expectations, falling short of projections by almost $570 million.
Musk’s Involvement With Tesla
In the wake of the profit drop, Musk vowed to spend more time at Tesla this month, The Wall Street Journal reported.
During a recent cabinet meeting, President Donald Trump recognized that Musk wishes to return to Tesla but highlighted that Musk is always welcome back at the White House.
Although Musk maintained a favorable rapport with Trump, he frequently clashed with White House trade adviser Peter Navarro regarding the administration’s tariff policies, especially toward China, where Trump enforced tariffs on certain goods, with rates reaching as high as 245%.
Tesla has major business ties in both Beijing and the United States.
Musk’s Perseverance
Despite encountering new financial challenges, Musk reportedly has faith that Tesla will ultimately prevail through future investments in artificial intelligence, self-driving taxis, and robotics.
Critics argue that if Musk shifts his attention more toward Tesla and steps back from DOGE initiatives, it may negatively impact the Trump administration’s attempts to reduce the size of the federal government.
