What Could Happen to Tesla Stock If Elon Musk Sold the Company?
This article was originally featured on GoBankingRates, Nasdaq, and Yahoo!
This was supposed to be Elon Musk’s year of triumph, though with the way it is going so far, 2025 might go down as a huge bump in the world’s richest man’s career. Between the chaos of running the Department of Government Efficiency (DOGE), the economy going up and down, and controversy over Musk’s place as an unelected government official, it’s possible Musk might look to make some changes.
How this could manifest is anyone’s guess — however, it could include the selling of Musk’s groundbreaking electric vehicle company, Tesla, which has been declining in the stock market and formed a “death cross” on April 14, Barron’s reported.
If Musk were to decide to sell Tesla — which he has not indicated an intention to do — this could either let the company bounce back into the market with a new reputation, or it could sink it forever.
GOBankingRates asked financial experts what might happen to Tesla stock if Elon Musk sold the company. Here is what they predicted could happen.
Market Restabilization
There’s a chance that Musk has simply become too controversial a figure to continue to run and oversee Tesla. Selling the company could give the company a wash in the public eye, leading to a restabilization on the markets and the faith of investors.
“Tesla investors and the public see the company as more stable and more focused on business rather than politics, contributing to internal optimism and increased external investment,” said Javier Palomarez, the founder and CEO of the United States Hispanic Business Council (USHBC).
In Palomarez’s professional opinion, investors could find less reasons to panic if Musk started to refocus on business instead of politics again. Additionally, if Musk did cash out all of his investments and sever all ties with Tesla, the company might find stabilization again, courting investors both new and old.
Drop in Value
Palomarez said Tesla investors and the public see Elon Musk as someone that has lost his position of influence within the government.
According to Palomarez, if Musk does not sell Tesla, regulators could begin to target him and his company for political reasons, pointing out how the current public scrutiny with his involvement in federal contracting could come back to hurt Tesla in the future.
“If Tesla is unable to find a suitable replacement [for Musk] their value will drop,” added Palomarez, noting that while it is possible to find another charismatic leader, it will be hard to match Musk’s talent for marketing, innovation and leadership.
Complete Disaster
“If Musk jumps ship, which he won’t, Tesla’s stock explodes like a lithium battery torched on the fourth of July,” said U.S. investor and finance expert Eric Schiffer of Reputation Management Consultants. “It’s like ripping out the brain and heart and expecting the patient to still function.”
Schiffer explained, “Investors buy Musk’s vision and brain; without him, they’re left holding stock in the Hindenburg. You would see a violent and ugly shareholder bloodbath leveled at the stock.”