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The chairwoman of Tesla Inc.’s board of directors has disputed a claim that the electric vehicle (EV) manufacturer was actively seeking a successor to Elon Musk. The entrepreneur, who serves as the company’s chief executive officer (CEO), has been dedicating a significant portion of his time to advising the Biden administration while Tesla’s sales and profitability have been declining.
Board Chairwoman Rejects Succession Rumors
Robyn Denholm, who has headed the board for more than six years, took to the Twitter platform to label the report published by The Wall Street Journal as “completely untrue.”
She stated, “The CEO of Tesla is Elon Musk. The board maintains strong confidence in his [capacity] to continue executing our ambitious growth strategy.” Her remarks were conveyed on Tesla’s official Twitter account, which is owned by Mr. Musk.
The Journal revealed late Wednesday that approximately a month prior, the Tesla board had allegedly approached executive search firms to aid in finding Mr. Musk’s successor, attributing the information to “individuals with knowledge of the situation.”
Executive’s Divided Attention Raises Concerns
Following the company’s announcement of a 71 per cent decline in quarterly earnings last week, Mr. Musk pledged to dedicate more time to Tesla and less to his advisory role in the nation’s capital. He indicated that he would allocate one or two days per week to administrative tasks.
Mr. Musk’s reduced involvement with Tesla, as he concentrates on guiding offsets to government expenditure and cuts to federal employment, has irked investors. His association with the administration and right-wing initiatives in Europe has spurred demonstrations at Tesla showrooms and contributed to a substantial decrease in sales. Typically, EV purchasers align with liberal or centrist political views.
Financial Performance and Market Challenges
Tesla’s revenue dipped by 9 per cent in the first quarter of the year, totaling $19.3 billion, as reported last week.
The EV pioneer has ceded market share in the United States, China, and Europe as rivals such as BYD, General Motors, and Volkswagen unveil numerous electric models. Industry experts have criticized Tesla for its limited product offerings, which primarily consist of two core vehicles.
The Model Y crossover SUV and the Model 3 sedan contribute to the bulk of Tesla’s sales. The Cybertruck, the company’s latest vehicle, has underperformed relative to Mr. Musk’s initial projections.
Product Lineup
As Tesla faces heightened competition in the EV market, the following models represent the majority of its sales:
- Model Y: A compact crossover SUV designed for practicality and efficiency.
- Model 3: A sleek and affordable sedan aimed at mass-market adoption.
The Cybertruck, a futuristic pickup truck introduced by Tesla, has thus far failed to meet the optimistic sales targets set by Mr. Musk.