Elon Musk's Exit As CEO Means 25% Drop In Tesla Stock Price: Gary Black Highlights Why Musk's Leadership Still Anchors Tesla's Valuation

What Happened: On Thursday night, Gary Black, the managing spouse astatine The Future Fund LLC, and a Tesla bull for years, addressed speculation astir Musk's imaginable ouster successful a station connected X, dismissing concerns regarding the committee seeking his replacement.

In his post, Black said if Musk stepped down arsenic CEO but stayed connected arsenic a Chief Technology Officer oregon a Chief Product Officer, Tesla's banal could driblet 5% to 10%. A implicit departure, helium warned, could trigger a 20% to 25% decline, wiping retired astir $220 cardinal successful shareholder value.

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Black’s station highlights the grade to which Musk inactive anchors Tesla’s $880 cardinal marketplace cap, a cardinal crushed wherefore helium believes the “odds are low” that the committee chooses idiosyncratic to regenerate him.

The noted money manager posted this connected X, with screenshots of Benzinga’s study connected Musk’s imaginable replacements based connected prediction markets.

The station came conscionable hours aft Musk himself addressed the rumors, blasting The Wall Street Journal's study arsenic an “extremely atrocious breach of ethics” and a “deliberately mendacious article.”

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Why It Matters: Another long-time Tesla bull, Dan Ives, of Wedbush Securities, said connected Thursday that helium believes Musk volition stay arsenic CEO of Tesla for astatine slightest the adjacent 5 years, portion besides adding that this mightiness person been the board’s informing shot.