If Elon Musk quits as CEO, Tesla's valuation could drop by a massive 25%, warns Gary Black; here's a complete breakdown of what he said

After speculation swirled around the potential for Tesla CEO Elon Musk to step down and replace him, a Tesla bull Gary Black, managing partner at The Future Fund LLC, was quick to shoot down the rumour, and also mentioned the consequences if this actually happens, as per a report.

Gary Black Reacts to Rumors of Elon Musk’s Departure From Tesla

Black addressed this on social media platform X(previously Twitter), he wrote, "I’m of the opinion that if @Elonmusk gave up his CEO role at $TSLA but continued in some role as Chief Technology Officer or Chief Product Officer, TSLA stock would fall by 5-10%," as per his X post.

Black went on to say, "If Elon left TSLA altogether I believe TSLA stock would fall by 20-25%." emphasizing that "For that reason I think the odds are low that the Board chooses someone to replace him," as per his X post.


For context, Musk has long been a key driver in Tesla's success and its market value. Tesla's market cap is now at $880 billion, and Musk's leadership is perceived as essential in keeping that value, as per Benzinga.

Elon Musk Replies to Rumors

Black's remarks came within hours after Musk himself reacted to the rumours in an X post. He responded to a Wall Street Journal report of his possible removal, terming it as an “extremely bad breach of ethics” and accusing it of being a “deliberately false article,” as per Musk's X post.

More Tesla Bulls Weigh In

Though Black's critique is severe, it's not so far out of line with other Tesla bulls. Dan Ives, a Wedbush Securities analyst, also commented on the rumours and opined that Musk will continue to be CEO for at least five years, as per Benzinga. Ives further opined that the rumours of Musk leaving might be nothing more than a "warning shot" by the board, according to Benzinga.

FAQs

Will Elon Musk be stepping down as Tesla CEO?
There have been reports suggesting that Tesla’s board might be considering replacing Musk, as per Benzinga. However, Musk has denied it.

Will Musk stepping down impact Tesla's stock?
Black suggested that Musk’s departure would result in a significant drop in Tesla’s stock, possibly wiping out $220 billion in shareholder value, as per Benzinga.