Tesla (TSLA) Stock: Analyst Predicts 25% Drop if Musk Leaves Company Entirely
By: coin central|2025/05/02 20:45:01
0
Share
TLDR:Tesla’s board reportedly considering CEO replacement, which Musk and the board deniedGary Black estimates Tesla stock could drop 5-10% if Musk stays but steps down as CEO, or 20-25% if he leaves completelyTesla plans to launch its robotaxi service in Austin, Texas in JuneTesla stock rose 18% since reporting Q1 earnings on April 22Waymo recently partnered with Toyota, creating what analysts call “legit competition” for TeslaTesla’s future appears to be at a crossroads with recent rumors about CEO Elon Musk’s potential replacement and the upcoming launch of its robotaxi service just weeks away.Tesla, Inc. (TSLA)The Wall Street Journal recently published a report claiming Tesla’s board was looking to replace Musk as CEO. This claim was quickly denied by both Musk and the board.Musk called the report an “extremely bad breach of ethics” and a “deliberately false article” in a post on X.It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c— Elon Musk (@elonmusk) May 1, 2025Tesla’s board chair Robyn Denholm also denied the allegation.Gary Black, managing partner at The Future Fund LLC and a longtime Tesla bull, addressed the speculation on X. He estimated that if Musk stepped down as CEO but remained in another role such as Chief Technology Officer, Tesla’s stock could drop 5% to 10%.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%. If Elon left TSLA altogether I believe TSLA stock would fall by 20-25%. For that reason I think... pic.twitter.com/ZwJ62gEXSB— Gary Black (@garyblack00) May 1, 2025More concerning was Black’s prediction that a complete departure by Musk could trigger a 20% to 25% decline. This would wipe out nearly $220 billion in shareholder value.Black’s comments highlight how much Musk still anchors Tesla’s $880 billion market cap. This is a key reason why he believes the “odds are low” that the board would replace him.Robotaxi Service Coming SoonWhile leadership rumors swirl, Tesla is preparing for a major milestone. The company plans to launch its self-driving robotaxi service in Austin, Texas, in June.This launch date is part of what has driven Tesla’s stock up 18% since reporting first-quarter earnings on April 22.The robotaxi service has been long awaited by investors. Musk has famously predicted that truly self-driving cars were “a year away” for nearly a decade. Now, the June launch is just weeks away.Musk has consistently chosen to use advanced cameras and artificial intelligence rather than expensive sensors for Tesla’s self-driving technology.Competition Heats UpTesla’s main robotaxi competitor, Waymo, currently completes more than 250,000 driverless rides weekly. While Waymo uses more sensors than Tesla, artificial intelligence is the core of its technology too.In a recent development, Waymo announced a partnership with Toyota to develop self-driving technology for personal vehicles and commercial applications.Morgan Stanley analyst Adam Jonas called this partnership a “major milestone” and “legit competition” for Tesla.The rise of AI has increased the need for real-world data to train driving models. Both Waymo and Tesla have the AI computing power and real-world driving data needed, though Tesla likely has more data with some 6 million vehicles on the road that can help train its AI models.Jonas suggested that Toyota and Waymo are essentially trying to recreate Tesla’s advantages. He also noted the possibility of other automakers partnering with Waymo or potentially aligning with Tesla in the future.“We’ve been waiting for several years for Tesla to explore self-driving licensing opportunities with other OEMs,” Jonas added.Tesla shares ended Thursday down by 0.58%, and fell another 1.06% after hours, partly due to the leadership uncertainty.Jonas maintains a Buy rating on Tesla stock with a price target of $410, believing AI applications represent most of the value in the stock. Currently, 53% of analysts covering Tesla rate the shares as Buy.Tesla’s stock was up 0.3% in premarket trading on Friday at $281.28.The post Tesla (TSLA) Stock: Analyst Predicts 25% Drop if Musk Leaves Company Entirely appeared first on CoinCentral.
You may also like

The most important thing in Web3 primary market investment
There is no perfect model, only builders who are respectful and responsible towards the market.

The strategic focus of cryptocurrency in reconstructing the international monetary system and the Chinese solution
Cryptocurrency has a significant impact on our country's international financial cooperation and creates great opportunities for enhancing our international financial discourse power. We must adapt to the new trends in the reform of the international monetary system, analyze the structural contradic...

Musk Poached Aave App's Web3 Prodigy
Aesthetic is a gift.

The Petro Order is Cracking. What Comes Next for the Middle East?
Ground War Begins, or Deterrence Takes Hold

ETF Fund Inflows Emerging, What's Still Missing for BTC to Fully Recover?
The market is entering a crucial phase of equilibrium.

Forbes Special Report: The Embrace of AI Agents in the Cryptocurrency Industry
AI agents are becoming the true native users of cryptocurrency; they do not need a beautiful interface, just a wallet and a payment track. This wave of "machine commerce" may be the most rational narrative in the crypto industry for years, or it may just be another round of hype in a new bottle.

Bitpanda, Vision Web3 Foundation, and Optimism Partner to Onboard European Financial Institutions to the Global Blockchain Economy
Vision Chain aims to address the long-standing infrastructure bottlenecks in the European financial sector

What will the early Hyperliquid prediction market look like?
Unleash the Imagination Space of On-chain Finance

Overseas VC's Two-Week Trip to China AI Leaves Them in Awe of Shenzhen Hardware
Delphi Labs founder's two-week deep dive into China's AI ecosystem: More bullish on hardware than expected, more bearish on software than expected, and observations on Chinese founders that flipped his prior beliefs.

Was CZ Also Rug Pulled? BNB Treasury CEA Industries Control Battle
CEA Industries' mNAV drops to 0.68, YZi Labs personally steps in to clean up the mess

A transaction in 7 seconds, earning tens of millions of dollars, he's seen as the "cancer of meme coins."
The belief that "Day Trading Shitcoins is the Only Way to Make Money" has become their go-to strategy.

Bittensor Ecosystem Token SN Surges 5x in March, What's Behind Richard Heart's One-Liner?
What did Andrew Ng say? Did he say anything? Is Distributed AI Training Feasible?

The economy is entering a new cycle, how can the average person prepare?
The key is not how much you earn, but whether you have cash flow, low leverage, and the ability to earn consistently

Access Binance Alpha Box: Sigma.Money to Launch BNB Chain Ecosystem Yield Farming Gateway
Sigma.Money's innovation is now translating into tangible market momentum.

Kimi, Chip, and Bean come together for a Crypto Hackathon: What did AI developers build on Monad?
Monad Ecosystem AI Deployment, More Than Just a Hackathon.

How to Trade Crypto on Mobile Browser & Win LALIGA Tickets (2026 Guide)
Discover how AI automation, natural language trading, and mobile browser trading platforms are shaping automated trading in 2026. Join the WEEX live trading event for early access and rewards like LALIGA VIP tickets.

Connecting encryption, TradFi, and payments, is Gate completing the final puzzle of the "super APP"?
Why is it said that TradFi is not a short-term narrative?

a16z Crypto Operating Partner: Wall Street is undergoing its biggest infrastructure upgrade in 30 years
What is currently happening is the largest infrastructure upgrade in the capital market since the rise of electronic trading thirty years ago.
The most important thing in Web3 primary market investment
There is no perfect model, only builders who are respectful and responsible towards the market.
The strategic focus of cryptocurrency in reconstructing the international monetary system and the Chinese solution
Cryptocurrency has a significant impact on our country's international financial cooperation and creates great opportunities for enhancing our international financial discourse power. We must adapt to the new trends in the reform of the international monetary system, analyze the structural contradic...
Musk Poached Aave App's Web3 Prodigy
Aesthetic is a gift.
The Petro Order is Cracking. What Comes Next for the Middle East?
Ground War Begins, or Deterrence Takes Hold
ETF Fund Inflows Emerging, What's Still Missing for BTC to Fully Recover?
The market is entering a crucial phase of equilibrium.
Forbes Special Report: The Embrace of AI Agents in the Cryptocurrency Industry
AI agents are becoming the true native users of cryptocurrency; they do not need a beautiful interface, just a wallet and a payment track. This wave of "machine commerce" may be the most rational narrative in the crypto industry for years, or it may just be another round of hype in a new bottle.
