Tesla (NASDAQ:TSLA) pushed back Thursday against reports suggesting its board was preparing to replace CEO Elon Musk, with Chair Robyn Denholm labeling the claims absolutely false,.

The denial followed Musk's own response calling the speculation deliberately false. Denholm said the board remains highly confident in Musk and his leadership as Tesla pursues an exciting growth plan. The stock rose more than 1% in afternoon trading.

The rumors had centered on concerns about Musk's distractions from side ventures, including his temporary government role with the Department of Government Efficiency, or DOGE. That stint had drawn scrutiny from some investors, particularly after earlier volatility surrounding his acquisition of Twitter, now rebranded as X.

Analysts defended Musk's position. Wedbush's Dan Ives called this Musk's moment of truth, acknowledging recent brand damage but emphasizing his critical role. UBS analyst Joseph Spak echoed that view, citing Tesla's key man risk and asserting no other company is as closely tied to one leader.