Good morning. As CEO of EV maker Tesla, Elon Musk is the face of the company. His image and influence are a big part of the brand—so much so that President Trump on Monday pledged to buy a Tesla to help defend "Elon's baby" at a time when its share price is plummeting and protests continue at Tesla dealerships.
However, investors are starting to examine what they've long ignored: “Tesla's bedrock value minus the ‘Musk premium,’” according to Fortune’s Shawn Tully. In his new piece, Tully set out to answer the question: What would Tesla be worth without Elon Musk? He explores the company’s worth on its own by separating out what he referred to as the “Musk Magic Premium, the extra market cap awarded for the ‘forthcoming’ ventures Musk has failed to deliver but that still rally hordes of believers.”
Tesla has been facing some headwinds. Its stock price reached a high of $488 on Dec. 18 but has now relinquished essentially all its gains from President Trump’s election, when it doubled in value over the span of just six weeks, becoming more valuable than all carmakers combined. Shares have been down heavily since the start of this year. Tesla shares sank over 15% on Monday, closing at $222.15.
