Here are 3 key things to watch for at Tesla's investor meeting, according to Deepwater's Gene Munster
Tesla investors should watch out for three key things at the upcoming shareholder meeting, Gene Munster said.
Munster pointed to the key leadership changes that could take place within the electric-vehicle company.
He estimated a 70% chance that Musk could step down as CEO in the next year, which could spark a sell-off in Tesla stock.
There are three key things to watch out for at Tesla's investor meeting, according to Deepwater's Gene Munster.
In a Twitter thread on Tuesday, Munster pointed to significant developments for Tesla that could be revealed at the company's next shareholder meeting on Tuesday.
Munster, a long-time bull and follower of Tesla stock, outlined two potential positives for Tesla stock, though he noted a major leadership change that could result in a sell-off for investors.
1. Elon Musk stepping down as Tesla CEO
Munster estimated there was a 70% chance that Musk would step down from his CEO role within the next year.
"If it's not today, it's almost certain it happens over the next few years," the analyst said.
That's largely due to Musk's juggling his portfolio of other companies, as well as his growing interest in artificial intelligence. In April, the billionaire quietly launched an AI startup called X.ai, which he suggested could roll out a rival AI bot to ChatGPT.
Musk stepping down as Tesla's leader could spark a sell-off in Tesla stock, Munster warned in a previous interview with CNBC, as Musk is inherently tied to the company's brand.
Tesla investors have also voiced concerns about Musk neglecting the company, and previously pleaded with the tech magnate to step away from Twitter to focus more on Tesla operations.
2. JB Straubel getting voted back on Tesla's board
Jeffrey Brian "JB" Straubel, who was once considered Musk's right hand man, stepped down as Tesla's chief technology officer in 2019 to launch his own EV-battery recycling startup.
But Straubel has maintained a large influence as an advisor at the company. Munster estimated there was a 95% chance Straubel would be voted onto Tesla's board, adding that "It's good for Tesla because it brings one of the great Tesla minds back into the fold."
He and has previously compared Straubel to Apple CEO Tim Cook, writing in November that Straubel "embodies a level-headed business approach and a steady-handed personality that is reminiscent of Cook."
3. The outlook on Tesla's demand
Tesla slashed prices on its key car models six times in the last year as the company tried to combat demand deterioration.
While the cuts have helped Tesla compete against its rivals, they have eaten into profit margins as first-quarter revenue dropped from a year earlier.
"My sense is delivery growth is trending above the 30% many investors are expecting and below the [company's] long term compound 50% target," Munster said.
While the cuts could lead to short-term earnings pain, Munster has previously called them an overall "win" for the company, as they've helped Tesla repair its reputation amid Musk's chaotic acquisition of Twitter over the past year.
That involved him selling off his own Tesla shares to fund his $400 billion purchase of the social media site, a move that angered Tesla investors.
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