• Tesla's board has denied reports of searching for a new CEO to replace Elon Musk.
• Both Musk and board chair Robyn Denholm labeled the reports as "absolutely false."
• Investor concerns grow over Musk's political engagement and its impact on Tesla's performance.
• Tesla faces declining sales and profits, with shareholders anxious about Musk's divided attention.

Tesla's board is facing heightened scrutiny after a report from The Wall Street Journal suggested that board members had reached out to executive search firms to explore potential successors for CEO Elon Musk. In response to these claims, Tesla Chair Robyn Denholm stated, "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," emphasizing the board's support for Musk amid declining sales and partisan backlash from his political activities, according to Indiatimes, Reuters, and New York Times.

Elon Musk denied the authenticity of the report, referring to it as a "deliberately false article" and an "extremely bad breach of ethics." His responses have underscored the tension within Tesla, particularly as Musk balances responsibilities with the U.S. government under President Trump’s administration, where he oversees the Department of Government Efficiency (DOGE), according to Newsweek and CBS News.

The company has reported a staggering 71% drop in profits and has faced significant public backlash due to Musk’s political affiliations, which have seemingly aligned Tesla against a core portion of its customer base. In the wake of these developments, Musk has committed to reducing his governmental involvement to refocus on Tesla, promising investors that his attention will shift back to the company to address ongoing concerns, as detailed by HuffPost, The Hill, and Reuters.

Despite the mounting challenges, analysts suggest that replacing Musk would be an incredibly complex task. Many believe that about three-fourths of the company's stock market value relies on Musk's personal brand and vision for future technologies, making the concept of a successor daunting. As competition increases, particularly from companies like BYD in the electric vehicle market, the board's steadfast support for Musk becomes critical, according to insights from Business Insider and Indiatimes.