By Rachael Levy, Abhirup Roy and Isla Binnie
Tesla’s board on Thursday rushed to defend its chief executive, Elon Musk, assuring he had the board’s confidence amid rising investor worries about his prolonged absences, polarizing politics and the EV maker’s plunging sales and profit.
The board reacted after a Wall Street Journal report that it had considered replacing Musk, which board chair Robyn Denholm denied. Denholm herself has taken heat for her high compensation and perceived failures to hold Musk accountable to shareholders.
The latest Musk drama underscores the unique dilemma Tesla’s board faces in managing him as he oversees five other companies and, more recently, has focused primarily on advising Republican U.S. President Donald Trump – alienating Tesla’s politically liberal customer base. Yet seldom have a company’s fortunes depended more heavily on the persona of its CEO, making even the notion of replacing him an enormous risk, according to investors, analysts and three people with knowledge of debates about Musk among
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