Wedbush Securities‘ Dan Ives believes Elon Musk will remain at Tesla Inc. TSLA as CEO, amid uncertainty around the billionaire’s future at the company.
What Happened: Following reports in the media that suggested Tesla’s Board of Directors was considering a future without Musk, Ives took to the social media platform X on Thursday to share his thoughts.
“While this was a very tense situation, we believe Musk clearly did the right thing and we believe Musk will remain CEO for at least five years at Tesla,” Ives said, reiterating his belief in Musk’s future at the company.
He then said that it’d come as a “surprise” if the Board of Directors followed through with the decision and was still “heading down this path.” Ives concluded the post by calling the reports a “warning shot” by the Board.
Interestingly, Tesla took to social media platform X on Thursday to deny the rumors of Musk being replaced. The company called the reports “erroneous” and “absolutely false.” Musk quoted the post on X, calling the report a “BAD BREACH OF ETHICS,” because the article failed to include an “unequivocal denial” by the Tesla board, Musk said.
Why It Matters: The news comes in as Musk had announced at the Q1 earnings call that he would scale back on DOGE to commit more time to Tesla, which led to a surge in TSLA stock value.
However, the company is still reeling from the effects of a difficult quarter. Tesla experienced a 71% plunge in YoY profits and a decline in sales in the U.S. domestic EV market, where it remains a segment leader.
Elsewhere, Tesla has ramped up production efforts for the Semi Truck, adding over 1,000 workers at the Nevada Gigafactory. However, reports suggest that the Trump administration’s tariffs could disrupt the Semi Truck’s production.
TSLA Stock scores well on Momentum and Quality metrics and has satisfactory Growth, but scores poorly on Value. It is currently trading for $282.16 on the NASDAQ. For more such insights, sign up for Benzinga Edge today!
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