Elon Musk, CEO of Tesla (TSLA), has been ordered by a California judge to comply with an SEC subpoena regarding his 2022 purchase of X.com, the social media platform formerly known as Twitter. This recent controversy has added to the list of challenges that Musk has been facing in the news lately, including his exorbitant pay package and other controversies. As a result, investors are wondering if Musk’s actions are impacting Tesla’s general appeal.
Craig Irwin, Senior Research Analyst at ROTH Capital Partners, and Eric Talley, Professor at Columbia Law School, joined Yahoo Finance Live to discuss Musk’s relationship with Tesla’s stock as the EV industry faces challenges. Irwin believes that Tesla’s competitive edge has “eroded” due to minimal technological innovation and various other factors. He sees the Tesla stock as a “hopes and dreams stock,” meaning that it is heavily dependent on Musk’s success and vision for the company.
On the other hand, Talley views Musk’s “antics” as a “distraction” that could have been avoided if Musk had followed advice from the company’s board. However, Irwin insists that Musk is Tesla and does not see any possibility of him being removed as CEO.
For more expert insight and market action, tune in to watch the full episode of Yahoo Finance Live.