r/stockmarket
What happens when Elon Musk is no longer leading his companies?
Questions if Tesla and SpaceX valuations are overly reliant on Elon Musk's vision rather than underlying fundamentals.
- Valuations of Musk's companies seem disproportionately tied to investor faith in him personally.
- A successor CEO might not command the same confidence, risking a valuation reassessment based on fundamentals.
A significant portion of the valuation of companies like Tesla and SpaceX appears to be tied to investor confidence in Musk's vision and ability to execute ambitious goals. What happens when he's no longer around?
Most companies of Tesla's and SpaceX's size have demonstrated that they can remain strong businesses and attractive investments even after a CEO transition. However, I've always felt that Musk's companies are different. Their valuations seem more closely tied to the market's belief in Musk himself than is typical for companies of comparable size.
If Musk were to step away or pass away, would a successor CEO command the same level of confidence from investors, customers, and employees? Would the market reassess these companies and place greater emphasis on their underlying fundamentals rather than Musk's vision and influence? How much of their current valuation is driven by the businesses themselves versus the market's faith in Musk?
I had not heard this. What was their reasoning?
Pad Tesla's quarterly numbers... First time here? Whats gonna really blow ppl's minds is when SpaceX buys Tesla...
Yes. It's my first time on the internet. 🙄
<3
SpaceX is not profitable
Go to YouTube and search for Roca news SpaceX. They show hundreds, if not thousands of Cyber trucks in the Texas SpaceX facility.
sets targets, I guess. Build a ship that can do this, and they do. Like Steve Jobs or whatever. 🙄
he is a personality people believe in for one reason or another, so what he says people just kinda do
Battery backup on wheels 😆
While it’s true that Tesla and SpaceX have good managers to run daily operation and Apple and Amazon have done well without founders, but the current “Elon Musk Premium” on the stocks is out of this world. Ppl buying at $135+ is buying Elon’s hopes and dreams and not based on financials.
He makes decisions very quickly without committees. How you do it is up to you but he’s says go do it. That’s why things get done quickly.
Stock goes down
The funny thing is any replacement would probably be more competent, but the share prices would definitely tank.
Nobody else wanted those cans, and they needed a buyer :)
Lol
I would imagine that all company vehicles (not just personnel, but small/medium sized equipment delivery between sites) are now cyber trucks. I don’t agree with it, but I would guess that’s the backend “reasoning”… because the obvious personal grift bonus
Control will pass to his child, Techno Mechanicus.