Tesla Inc. shares held steady in premarket trading Thursday after the electric vehicle giant refuted a Wall Street Journal report claiming its board was actively seeking a replacement for CEO Elon Musk.

The report, which cited sources familiar with the matter, alleged that Tesla’s board had engaged multiple executive search firms to initiate a formal process for identifying a new CEO.

Following the news, Tesla’s stock dipped as much as 3% in overnight trading on the Robinhood platform but later recovered losses.

Tesla Chair Robyn Denholm took to social media platform X to dismiss the report as “absolutely false,” quelling speculation about leadership changes at the company.

“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company,” she wrote.

“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”

This comes as Tesla’s sales and profits fell sharply in the first quarter, missing market expectations on both revenue and earnings.

Musk acknowledged that his ties to the Trump administration might be weighing on Tesla’s stock performance.

During last week’s earnings call, he also revealed plans to spend just one or two days per week leading the newly formed Department of Government Efficiency starting in May.