Elon Musk reaffirms commitment to Tesla, board denies plans to replace him as CEO.

Tesla CEO Elon Musk reaffirms commitment to the company, stepping back from government roles. Tesla's board denies any plans to replace Musk as CEO, and analysts predict a mixed outlook for the stock price with an average one-year target price of $282.94, a slight downside of 1.49% from the current trading price. The consensus among 54 brokerage firms rates Tesla's stock with an average recommendation of 2.7, denoting a "Hold" status.

Tesla's stock price reacted to a mix of developments on Wednesday, as Elon Musk reaffirmed his commitment to the company and the board denied any plans to replace him as CEO. The stock ended 3.38% lower at $282.16, after a report that the company’s board had initiated a search for a potential successor to Musk. However, the board subsequently clarified that there are no plans to replace Musk [1].

The report, citing people familiar with the matter, stated that Tesla board members contacted several executive search firms about a month ago to explore CEO succession options. The discussions were reportedly prompted by concerns over Musk’s increasing involvement with the Trump administration. Musk has been criticized for his role as head of the Department of Government Efficiency (DOGE) and his public alignment with far-right political movements in Europe, which has led to protests and acts of vandalism targeting Tesla showrooms and charging stations [2].

Despite the recent market volatility, analysts maintain a mixed outlook for Tesla's stock price. Stifel analyst Stephen Gangaro recently cut his price target on Tesla to $450 from $455, maintaining a buy rating on the stock. The target still implies a 73% upside over the next 12 months [3]. The consensus among 54 brokerage firms rates Tesla's stock with an average recommendation of 2.7, denoting a "Hold" status, with an average one-year target price of $282.94, a slight downside of 1.49% from the current trading price [3].

Musk has been under scrutiny for his divided attention between Tesla and his role in the Trump administration. Last week, Musk stated that he would significantly reduce the time spent on his role within the administration to refocus on leading his portfolio of companies, including Tesla. However, his role as head of DOGE has drawn criticism from investors, particularly amid declining sales of Tesla’s aging electric vehicle lineup [1].

The current status of the board’s succession planning remains unclear, but the report noted that Tesla board members met with Musk and urged him to publicly commit more time to the company. However, it remains uncertain whether Musk was aware of the succession planning efforts or if his renewed commitment to Tesla has influenced those discussions [1].

In recent months, Musk has expressed that he no longer wants to be CEO of Tesla. However, he reportedly said that the replacement would fail to realize his vision for Tesla, but he was motivated to leave anyway [2]. Musk owns 410 million shares of Tesla stock outright, equal to 12.8% of the company’s outstanding shares. He has also been granted options to buy an additional 304 million shares as his compensation for running the company since 2018 [2].

Tesla's stock price has been volatile in 2025, gaining 9% over the past month but falling 25% in the first quarter of the year. Despite the year-to-date decline, Tesla remains a strong long-term performer. Over the past year, Tesla share price has surged 54%, and over a five-year period, it has delivered an impressive return of 500% [1].

References:
[1] https://www.livemint.com/market/stock-market-news/tesla-stock-price-falls-over-3-amid-reports-that-board-opened-search-for-ceo-to-succeed-elon-musk-11746068846065.html
[2] https://www.industryleadersmagazine.com/teslas-board-looking-to-replace-elon-musk-as-ceo-is-he-ready/
[3] https://finance.yahoo.com/news/tesla-stock-73-upside-according-140103624.html