Tesla shares trade flat as company denies Musk replacement reports

Shares of Tesla were flat in early trading Thursday after the electric vehicle maker denied a Wall Street Journal report claiming its board was actively searching for a successor to CEO Elon Musk.

The stock had initially dropped as much as 3% in overnight trading following the story, before recovering most of those losses.

Despite the modest rebound, Tesla shares remain under significant pressure.

Year to date, the stock has lost more than 25% of its value, extending a period of pronounced volatility.

Tesla’s shares surged from around $250 ahead of the US election to a post-election high of $480, fueled by investor optimism over a second Trump term and Musk’s perceived influence in the new administration.

That rally quickly reversed. Disappointing first-quarter delivery figures and increasing scrutiny over Musk’s political involvement triggered a sharp selloff, sending the stock down to just above $220 by April 8.

Together with operational headwinds, these factors have weighed on investor sentiment and added pressure to Tesla’s valuation.

Is Tesla replacing Elon Musk?

Tesla has denied a report by The Wall Street Journal claiming that its board is searching for a successor to CEO Elon Musk.

The report, citing unnamed sources, said board members had contacted executive search firms to begin a formal process to identify a new chief executive.

In response, Tesla chair Robyn Denholm dismissed the claims as “absolutely false” in a post on X.