It was actually pretty different from that. PayPal merged with Elon's X.com and had technical differences with the PayPal founder and they decided to stick with PayPal's tech strategy. There weren't similar scandals. (See Founders at Work).
In Paypal's case, Elon Musk went on his honeymoon trip to Australia and when he landed there he got the news that he had been removed from the position of CEO (See Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future), just like how Kalanick got fired on his sabbatical.