Elon Musk Isn't Leaving Tesla Anytime Soon — Rumors Debunked
Some have even been speculating whether Musk will leave Tesla to focus on Twitter. However, he probably won't quit Tesla anytime soon. Here's why.
May 9 2022, Published 8:30 a.m. ET
As Tesla’s CEO and the world’s richest person, Elon Musk is in the news and faces controversies regularly. Recently, he has been in the news for his offer to acquire Twitter. His acquisition is facing a stockholder lawsuit after it was cleared by the company’s board. The FTC is also said to be investigating Musk’s purchase of the microblogging site.
Musk has a huge and growing Twitter following and is popular on social media. Many on social media have been guessing Musk’s next purchase after Twitter. Some have even been speculating whether he will leave Tesla to focus on Twitter.
Musk isn't leaving Tesla anytime soon — here's why.
Despite the rumors, Musk isn't leaving Tesla anytime soon. There are multiple reasons why Musk, a smart business leader, wouldn't leave Tesla. First, Tesla is the biggest company in Musk’s business empire. He's the biggest Tesla stockholder and his holdings are valued at over $140 billion. To put that in perspective, Musk’s net worth is around $265 billion.
Tesla stock would crash if Musk were to leave.
In 2021, Tesla stock crashed when Musk said that he would sell 10 percent of his holding in Tesla. If Musk left Tesla, the stock would crash badly. While it would mean losses for Tesla stockholders, it would also shave billions off of Musk’s net worth.
Tesla is the largest automaker by market cap and none of the legacy automakers even come close. One may attribute the company’s valuation premium to its high growth, strong brand, and the software side of the business, which includes the Autopilot as well as the yet-to-be-launched robotaxis. However, a significant premium comes from the company's association with Musk.
Tesla is synonymous with Elon Musk.
It would be fair to say that Tesla is synonymous with Musk, just like it is with electric cars. Musk has been a key driver of the company’s growth. He has been the company’s main business strategist and the de facto lead marketeer. With Musk at the helm, Tesla doesn't need to spend on marketing and advertisement.
While Musk might not have founded Tesla in the strict sense, the two look inseparable. In 2021, Musk tweeted that he thought about quitting his jobs to become a full-time influencer. However, like many more Musk tweets, it was a hoax at best and meant to keep his fanbase engaged on the platform.
When would Musk leave Tesla?
Musk is 50 years old and isn't ready to leave the company anytime soon. Eventually, Musk might have to find a successor for the company. From Bill Gates to Larry Page and more recently Jeff Bezos, founders eventually step down and hand over the baton to others.
There are plenty of examples where the transition from the founder to a new CEO has been fruitful. Apple stock has done incredibly well under Tim Cook, while Alphabet investors have also enjoyed good returns under Sunder Pichai. Amazon stock has sagged under the leadership of Andy Jassy but that has more to do with the fall in stay-at-home companies.
Will Musk become Twitter’s CEO?
Some have been speculating whether Musk would become Twitter’s CEO. While Musk’s plate might appear full since he's leading multiple companies including Tesla and SpaceX, it isn't something that we can rule out at the moment.