According to NYU’s “dean of valuation,” Tesla has to distance itself from Elon Musk’s character to win back investors after a 75% drop

At the beginning of 2022, investors valued Tesla at more than $1 trillion because they anticipated significant future growth for the electric car manufacturer, which was led by someone who was widely regarded as a true innovator.
Investors said that the Elon Musk premium was part of the reason why Tesla was valued more than Toyota, Volkswagen, Honda, Ford, General Motors, and others even though it only sold a small percentage of cars.As investors grow worried about Musk’s continued shenanigans as the new CEO of Twitter and his split focus operating Tesla, SpaceX, and Twitter all at the same time, Tesla stock has fallen more than 70% in recent months to levels last seen in 2020.
 Source: YahooDamodaran, who is known as NYU’s dean of valuation for his knowledge of value investing, said to CNBC on Thursday that a company’s reputation is a double-edged sword when it is so intimately linked to its CEO in order to win back investors.A firm that is so intimately associated with a person’s personality poses the risk of becoming into a human being, according to Damodaran. What you’re getting here is kind of like a gamble for or against Elon Musk.And although it’s great when the general public’s opinion of the leader is favourable, that opinion may shift at any time.It will be difficult for Tesla to separate itself from personality because the firm was created in Elon Musk’s likeness, in my opinion. You run all kinds of dangers whenever a firm is compared with a person, and Tesla investors are confronting those risks said Damodaran.As they pressure the Tesla board to disclose its succession plans in the event that Musk decides to concentrate on his other business endeavours, investors are now waking up to these concerns.In light of the recent volatility, one of Tesla’s largest individual shareholders has demanded that the company begin looking for a new CEO. According to the LA Times, a Tesla shareholder in Iceland presented a resolution asking Tesla shareholders to decide in May whether the board of directors should create and maintain a key-risk report.Share your thoughts with us in the comments.