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After a information report claimed that Tesla Inc. (NASDAQ:TSLA) was trying to change CEO Elon Musk, a longtime Tesla bull dismissed the concept, calling the chance of such a transfer extraordinarily low.
What Occurred: On Thursday evening, Gary Black, the managing accomplice at The Future Fund LLC, and a Tesla bull for years, addressed hypothesis about Musk’s potential ouster in a submit on X, dismissing issues concerning the board looking for his alternative.
In his submit, Black stated if Musk stepped down as CEO however stayed on as a Chief Expertise Officer or a Chief Product Officer, Tesla’s inventory might drop 5% to 10%. An entire departure, he warned, might set off a 20% to 25% decline, wiping out almost $220 billion in shareholder worth.
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Black’s submit highlights the extent to which Musk nonetheless anchors Tesla’s $880 billion market cap, a key cause why he believes the “odds are low” that the board chooses somebody to interchange him.
The famous fund supervisor posted this on X, with screenshots of Benzinga’s report on Musk’s potential replacements based mostly on prediction markets.
The submit got here simply hours after Musk himself addressed the rumors, blasting The Wall Avenue Journal‘s report as an “extraordinarily dangerous breach of ethics” and a “intentionally false article.”
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Why It Issues: One other long-time Tesla bull, Dan Ives, of Wedbush Securities, stated on Thursday that he believes Musk will stay as CEO of Tesla for a minimum of the following 5 years, whereas additionally including that this may need been the board’s warning shot.
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