Elon Musk’s ex is subtly hurting Tesla
Elon Musk’s approximately $800 billion electric vehicle company Tesla is growing rapidly. The stock has doubled in value this year, even as Musk has invited controversy and an advertiser exodus over his actions and comments at Platform X, formerly Twitter.
But more broadly, Tesla faces a challenging mix of headwinds, ranging from increased competition from older carmakers for EV market share to uncertain EV demand and lingering concerns about charging infrastructure. Margins are declining. Regulators are also scrutinizing claims about self-driving capabilities and the range of electrified vehicles.
So then, how can a CEO effectively lead a company through such turmoil while spending significant brainpower on a separate, weaker business?
“What good is X doing Tesla?” said David Trainor, CEO of New Constructs, an investment research firm. “They hired a CEO to run it, and I don’t see any downside to him stepping away 100%.”
In fact, in Trainor’s view, if Musk announced he was leaving X, Tesla stock would probably rise.
Musk’s financial troubles also pose a risk to Tesla shareholders.
“It’s hard to think of many CEOs who are more the face of a company and a brand than Tesla’s Elon Musk,” said Garrett Nelson, vice president and senior equity analyst at CFRA Research. “For example, if X advertising revenues decline significantly and Musk needs to sell more Tesla stock to provide funding to
For now, Wall Street is looking beyond Musk’s X-related drama.