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CallingElon Muska polarizing figure might be an understatement.
The Tesla CEO has built multiple billion-dollar companies and made his investors incredibly wealthy.
Its all got some people questioning whether Musk could eventually be deemed unfit to lead as Teslas CEO.
Heres how the answer could influence yourinvesting decisions.
Can Musk Be Fired From Tesla?
Musk can be fired from Tesla if the companys shareholders vote to replace him as CEO.
What Could Change?
Musk has been a lightning rod for controversy over the past several years.
If that were to happen, he could be fired.
Thats why its still a factor worth considering before investing in Tesla stock.
Musks potential ousting is a risk that shareholders cant afford to ignore entirely.
What Happens to Teslas Stock If Musk Gets Fired?
Its impossible to say exactly what would happen to Teslas share price if Musk were fired.
Hes ahugely popular figureand a driving reason behind Teslas growth into a $550 billion company.
But Tesla is a business with more than 100,000 employees.
This would come from people panic-selling the stock in size, which often happens in periods of uncertainty.
In other words, people trying to avoid further losses on their Tesla shares could sell immediately.
There are a few different directions Tesla stock could take from here.
It will depend on how much market participants think Tesla will miss Musks contributions.
This could lead to a prolonged sell-off that leaves Tesla with a much lower share price in the end.
This repricing phase could last weeks or months.
Once Teslas shares are repriced, the stock would eventually land at a new equilibrium price range.
Musk leaving Tesla could make it a less valuable company, given his wide sphere of social influence.
But its tough to say how much less the company could be worth without him.
Thats why we have markets, which decide questions like these through theongoing buying and sellingof shares.
Elons Probably Not Going Anywhere
Its smart to think through the downside risks when making investing decisions.
But you also have to assess the likelihood of those risks actually taking place.
In this case, there are no signs that Musk will be leaving Tesla anytime soon.
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