Well, I’m going to tread lightly on this one. The news came out shortly after the closing bell:
Tesla’s stock, which has already been chopped by more than half, didn’t take kindly to the news, probably because the market knows that this kind of bombshell will diminish his participation in the company.
The timing is interesting, because in recent weeks Elon has made it crystal clear he wants a huge stock package from Tesla to re-establish a 25% stake so that he can be “influential” in the organization. I daresay that this news changes the likelihood of such a new package from “Slim” down to “None.”
That, in turn, will probably result in what Elon has pledged all along, which is that he’s going to focus on his other organizations, such as SpaceX and X.ai, and less on the car maker.
Just a guess.
