Elon Musk denied a report late Wednesday that James Murdoch is the “favorite” candidate to replace him as chairman of Tesla Inc.

In a tweet posted at 4:20 Pacific time—possibly an inside joke to marijuana and his now-infamous tweet saying the company had “funding secured” to go private at $420 a share—Musk tweeted a reply to a Financial Times story that said simply: “This is incorrect.”

Earlier in the day, the FT, citing two sources briefed on the discussions, reported that Murdoch could take over the chairman role after he steps down as chief executive of 21st Century Fox FOX, +0.92% once the company completes its entertainment-assets sale to Walt Disney Co. DIS, -0.64%

The FT said Musk favors current board member Antonio Gracias, but said he may not be seen as independent enough. The report added that other external candidates are also being considered.

As part of a settlement with the Securities and Exchange Commission over charges he misled investors about the bid to go private, Musk must give up his chairmanship for three years. He must also pay a fine of $20 million, in addition to a $20 million find Tesla must pay. The company must also add at least two more independent board members, and establish guidelines and oversight for how Musk acts on social media.

Since the settlement was announced in late September, Musk has trolled the SEC in tweets, accusing them of helping short-sellers.

Tesla shares TSLA, +1.95% fell 1.2% in morning trade Thursday, and are down more than 18% year to date, compared to the S&P 500’s SPX, +0.29% 4.1% gain.