Tesla's challenging start to the year has reignited discussions about Elon Musk's leadership. Reports of a search for a new CEO surfaced in early May, amidst stock price declines and global sales issues. Despite recruitment firms being contacted, Tesla's board rushed to deny these rumors, affirming their confidence in Musk. Analysts believe his departure would significantly impact the company and stock, with one asserting that Musk cannot be easily replaced. While he remains committed, the question of succession looms over Tesla as they navigate these turbulent times.
"He's a fabric that holds Tesla together and moves it forward. He's one of those people who can't be replaced," said Gene Munster, Managing Partner at Deepwater Asset Management and a Tesla investor.
"Musk has identified a potential successor as CEO, although he did not say who it was," Tesla board member James Murdoch revealed during testimony regarding Musk's pay package.
Although Musk is unlikely to leave anytime soon, Tesla analysts and investors told Business Insider that he would be nigh-on impossible to replace.
"If Musk departed, the stock could decline 25% or more," Munster estimates, reflecting concerns about Musk's unique role at Tesla.
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