Tesla has refuted a report suggesting that its board members reached out to executive search firms to identify a potential successor for CEO Elon Musk during a period marked by challenges related to his role in the Trump administration.

The Wall Street Journal indicated that this effort emerged about a month ago, coinciding with a significant drop in Tesla’s stock price, which had nearly halved from its peak of $488.54 in December.

Musk has encountered substantial criticism from investors due to his tenure at the Department of Government Efficiency (Doge), where he has been involved in initiatives aimed at reducing federal jobs, alongside declining sales of Tesla’s older electric vehicle models.

His workforce reductions sparked protests across the United States, leading to calls for a consumer boycott of Tesla. Additionally, Musk’s alignment with far-right political movements in Europe prompted demonstrations against both him and Tesla, resulting in vandalism of showrooms and charging stations across various regions.

According to the report, board members had discussions with Musk urging him to publicly commit to dedicating more time to Tesla.

Recently, Musk stated that he would “significantly” reduce his involvement with Doge as Tesla announced a decline in first-quarter profits alongside a decrease in sales, and indicated it could not provide volume guidance for the current year.

Robyn Denholm, chairman of Tesla, addressed the matter on X, declaring the report false and incorrectly asserting that the board had initiated a process to find a new CEO.

She remarked, “Elon Musk is the CEO of Tesla, and the board maintains strong confidence in his ability to lead the company’s exciting growth strategy.”

Musk responded on X, emphasizing, “It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE without including an unequivocal denial from the Tesla board of directors beforehand!”

The Wall Street Journal’s report leaves it uncertain whether Musk was aware of any discussions regarding succession planning, or if his assurance to devote more time to Tesla impacted these efforts.

A recent Morgan Stanley survey revealed that 85 percent of Americans believe Musk’s political comments are adversely affecting Tesla. As of last night, Tesla shares closed at $282.16, reflecting a 3.4 percent decline.

In France, Tesla’s sales plummeted for the fourth consecutive month in April, according to data released on Thursday. The numbers indicated a drop of 59.4 percent year-over-year, with only 863 vehicles sold, a steeper decline than the 36 percent drop observed in March.

Year-to-date, Tesla’s sales in France have decreased by 43.9 percent amidst an overall market contraction of 7.3 percent.