Slate News What Next: TBD | Why Wall Street Can’t Quit Elon
Apr 6, 2025
Felix Salmon, chief financial correspondent for Axios and host of Slate Money, dives into the captivating dynamics between Wall Street and Elon Musk. He discusses why investors remain loyal to Musk despite controversies surrounding Tesla. The conversation highlights Musk's unique influence on stock dynamics, even amid declining deliveries and rising competition from companies like BYD. Additionally, it explores the complex interplay of politics and finance, revealing the delicate balance Wall Street maintains with disruptive figures like Musk.
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Tesla's Valuation
- Tesla's stock valuation has never primarily reflected its car sales.
- It's tied to Elon Musk's persona and bets on future technologies like robots and self-driving cars.
CEO-Board Relationship
- Typically, CEOs are hired and fired by a board of directors who answer to shareholders.
- Boards have a fiduciary duty to act when CEOs underperform.
Elon's Entrenched Position
- Elon Musk's board is filled with loyalists, making it unlikely he'll be fired despite Tesla's underperformance.
- Shareholders seem to believe Musk's involvement benefits Tesla.