In a whirlwind week for Tesla and its enigmatic CEO, Elon Musk, board chair Robyn Denholm has publicly dismissed rumors of internal efforts to remove Musk from his leadership role. The statement comes amid Musk’s abrupt departure from his advisory position at the White House, where he had been collaborating on clean energy initiatives since early 2025.
Denholm’s remarks, first reported by The Australian Financial Review (AFR), emphasized the board’s “full confidence” in Musk’s vision, despite recent turbulence in Tesla’s stock price and production challenges. “Elon’s leadership has been integral to Tesla’s success, and the board is united in supporting him,” Denholm said. “Any suggestion of a rift is categorically false.”
The denial follows weeks of speculation fueled by Musk’s reduced public engagement with Tesla, coinciding with his temporary relocation to Washington, D.C. Earlier this year, Tesla staged a remarkable financial and operational comeback, buoyed by record deliveries of its revamped Model 3 and the long-awaited rollout of its Cybertruck fleet. However, analysts began raising concerns after Musk shifted focus to his White House role, which critics argued distracted him from Tesla’s day-to-day operations.
Musk Exits West Wing Amid “Return to Engineering” Pledge
Musk’s exit from the Biden administration’s clean energy task force was confirmed late Monday by the New York Post (source), which cited unnamed White House officials stating Musk had “stepped back to prioritize his companies.” The billionaire entrepreneur later took to X (formerly Twitter) to clarify his decision, posting, “Time to ditch the suits and get back to the lab. Engineering > politics.” The tweet, which included a photo of Musk at Tesla’s Austin Gigafactory, has garnered over 2 million likes (@elonmusk).
While the White House declined to comment on the nature of Musk’s departure, insiders suggest his unorthodox style clashed with bureaucratic processes. “Elon’s a disruptor, and D.C. isn’t always built for that,” one source told the Post.
Tesla Board Reaffirms Support Amid Governance Questions
Despite Denholm’s insistence that the board isn’t seeking a leadership change, The Wall Street Journal (WSJ) reported last week that directors had privately discussed “long-term succession planning” during a quarterly meeting. The talks were framed as routine governance discussions, but leaked details sparked investor anxiety. Tesla shares fell 4% following the report before rebounding after Denholm’s statement.
Industry experts argue the board’s challenge lies in balancing Musk’s irreplaceable brand identity with Tesla’s evolution into a mature automaker. “Elon is Tesla to many stakeholders,” said Bernstein analyst Toni Sacconaghi. “But as the company scales, there’s pressure to institutionalize leadership.”
Comeback Momentum Continues
For now, Tesla’s operational momentum appears unstoppable. The company recently announced a 40% quarter-over-quarter jump in deliveries, driven by its Shanghai and Berlin factories hitting full capacity. A viral post on Tesla’s official X account this week showcased its Semi trucks hauling batteries to Nevada, signaling progress on its energy storage division.
Musk, meanwhile, has doubled down on his hands-on approach, telling employees in an internal email that he’s “laser-focused” on accelerating production of Tesla’s next-gen $25,000 compact car. “The future is electric, and we’re just getting started,” he wrote.
As the dust settles, investors and fans alike await Musk’s next move. With the CEO back in the trenches and Denholm quelling boardroom drama, Tesla seems poised to ride its resurgence—proving once again that in the world of Elon Musk, chaos and innovation are two sides of the same coin.
For more on Tesla’s 2025 turnaround, visit GSM Go Tech.