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Tesla (NASDAQ:TSLA) commits Musk's five-year horizon, teases Starlink IPO prospects. Tesla vows Elon Musk will remain CEO through 2030, providing more definitive leadership visibility amid concerns over his political engagements and time split with SpaceX and the Trump Administration.
Despite personal blowback from his interventionist statements, Musk said he did what needed to be done, noting that the brand has offset some political fallout with additional sales from right-leaning buyers, even as delivery reports have shown steep declines in North America and Europe.
He plans to dial back political spending after forthcoming election defeats and defended his dual roles, underscoring that his commitment to Tesla is ironclad over the next five years.
On the SpaceX front, Musk added that Starlink may pursue an IPO eventually, though he's in no rush, highlighting growing confidence in the satellite-internet business after adding roughly 2 million subscribers worldwide.
He also confirmed he'll press ahead with his lawsuit against OpenAI, despite the AI pioneer partially reversing its for-profit restructuring plan. Musk's remarks come as investors and analysts grapple with how his political profile and multi-company leadership might influence brand perception and operational focus.
Why It Matters: Locking in Musk's CEO tenure for another half-decade reduces one major uncertainty for investors, while Starlink's eventual public listing could unlock substantial value outside Tesla.
Tesla stock has taken a hit, with analysts' average 12-month target now at $285.79 that's an 18.6% downside from current levels. The spread is wild though: some see it heading as high as $452, while others think it could crater to just $19. That kind of divergence screams uncertainty. After a bumpy ride post-2024 highs, investors seem unsure where the EV giant is headed next.
This article first appeared on GuruFocus.