Elon Musk Should Pledge 3-5 Year Tenure As CEO, Says Wedbush's Dan Ives: '70% Of The Value Of Tesla Is Musk'

Amid fluctuating market conditions, Wedbush analyst Dan Ives has shed light on the pivotal role Elon Musk plays in the performance of Tesla Inc. TSLA stock.

What Happened: In a recent interview, Ives addressed the speculation surrounding Musk and the recent downturn in Tesla’s stock prices.

Speaking with Han Kyung Global Market, Ives emphasized the integral role of Musk in Tesla’s valuation.

“70% of the value of Tesla is Musk. Musk is Tesla, Tesla is Musk,” he said.

Despite acknowledging that Musk’s actions and political commentary may have negatively impacted demand for Tesla’s products, Ives maintains that Musk remains essential for the company’s long-term success.

“The distractions… it’s hit a tipping point and I think he’s going to either need to slow this down. Otherwise, he is going to need to pick and I believe that this will ultimately lead to him having to make some tough decisions over the coming month maybe a year,” Ives added.

He also highlighted the potential negative consequences if Musk were to depart from Tesla, particularly the loss of his contributions to the company’s AI initiatives.

Furthermore, Ives suggested that Musk should commit to remaining Tesla’s CEO for at least the next three to five years and communicate this clearly to shareholders at the upcoming May meeting.

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Why It Matters: Earlier this month, Tesla’s stock faced a downturn following a report on disappointing first-quarter deliveries, which sent the stock lower in premarket trading. This was a significant event, as it indicated a shift in market sentiment towards the electric vehicle giant.

However, recent insights from Future Fund Managing Partner Gary Black suggest that the stock may be on the verge of recovery. Black indicated that much of the negative fundamentals might already be priced into the stock.

Adding to the narrative, Ives himself had previously commented on the bearish market sentiment towards Tesla, predicting a significant rebound for the company, especially with advancements in AI technology.

At the time of writing this article, Tesla was trading at $172.09, registering a 0.19% increase in the pre-market session. The company’s 52-week high remains at a robust $299.29.

Read Next: Elon Musk Reacts As Boeing CEO David Calhoun Receives $33M Compensation For 2023 Despite Airplane-Maker’s

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image: Shutterstock/ kovop

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