I feel like an unusually large part of Tesla’s valuation is tied directly to Elon and that unlike a lot of other megacap public companies with a deep bench of interchangeable executives, Tesla is all Elon and there are very few other long serving executives who could readily take over the ship if he left or suddenly died. Also so many people are invested mostly because of Elon, and if he were no longer there I don’t think those same investors would have the same conviction in Tesla without him and would divest.
So my hunch is that a sudden death would be pretty much catastrophic for the stock. Given how large the company is now by market cap it leads me to wonder if a sudden crash would trigger contagion effects in the broader market that could cause a wider crash as well.
Submitted May 08, 2021 at 03:48AM by prplput https://ift.tt/2RCbv56
