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Tesla (NASDAQ:TSLA) is looking to shake off boardroom drama with Wedbush's Daniel Ives says the leadership dust has finally settled and Elon Musk remains Tesla's undisputed CEO as the automaker heads into its next growth phase.
In March, the Wall Street Journal reported that Tesla's board quietly launched a CEO search amid rising concerns over Musk's public ties to the Trump administration and the damage it was doing to Tesla's brand.
Several board members allegedly pressed him to recommit fully to Tesla, and Musk appeared to heed the warning during his Q1 earnings call by explicitly distancing himself from both Donald Trump and DOGE. Tesla swiftly denied the WSJ report, with chair Robyn Denholm taking to X to label the search story absolutely false, but Musk's decision to tone down external distractions and reassert his focus sent a clear signal that the board's influence remains potent.
Ives, a longtime Tesla bull known for his rigorous channel checks, says he wasn't surprised by the drama's resolution. While this was a very tense situation, we believe Musk clearly did the right thing and will remain CEO for at least five years, and we'd be surprised if the board is still pursuing a search path today, he told clients, summing up what he called a warning shot that has now passed.
Ives noted Musk sounded unusually dialed in and reading the room on the recent earnings callan uncommon shiftand believes the pivot back to core priorities around autonomy and robotics reflects a new alignment between Musk and Tesla's board. He reiterated his Outperform rating and $350 price target, implying roughly 25% upside from current levels.
Investors should note that a unified board backing and Musk's renewed focus clear a key overhang and sharpen Tesla's strategic vision toward next-generation electric vehicles, self-driving technology and energy products.
Markets will now look to Tesla's Q2 delivery figures in mid-July and the next Autonomy Day event for confirmation that the management reset delivers both execution and innovation momentum.
It's important to note that Tesla shares have slid roughly 30.5% since early January, tumbling from highs near $370 to a mid-March low around $220. The pullback underscores growing investor caution amid production ramp questions and broader market headwinds for high-multiple growth stocks.
After finding support in the low $220s, the stock staged a volatile rebound, climbing back into the $280$300 range in late April. However, profit-taking kept the rally in check, with a mid-April dip into the mid-$240s before another push higher. At today's $280.52 close, Tesla remains well below its January peak, reflected in a steep 66.4% CAGR loss since the year's start. Investors will be looking for a sustained move above $300 to signal a more durable shift in sentiment and renewed bullish conviction.
This article first appeared on GuruFocus.