Tesla shares are experiencing a decline in early Monday trading due to a change in management. CFO Zachary Kirkhorn, also known as the Master of Coin, will be stepping down after a 13-year tenure with the company. Kirkhorn, who has been serving as CFO for the past four years, will remain at Tesla until the end of the year. The exact reason behind his departure remains unknown as Tesla declined to comment.
The unexpected nature of this shift has caught many by surprise, given Kirkhorn’s well-respected position within the investment community. Some even speculated that he might take on a more prominent role in the future, relieving some responsibilities from CEO Elon Musk.
As a result of this news, Tesla stock has dropped by 2.3% in early trading, reaching $248.08. In contrast, the S&P 500 is currently up by 0.4%, while the Nasdaq Composite has experienced a slight dip of 0.1%.
Opinions regarding this management shift are flooding in from Wall Street. Baird analyst Ben Kallo commented on Monday that the change did not alter his viewpoint on Tesla. Kallo noted that Vaibhav Taneja, the Chief Accounting Officer who will be assuming the role of CFO, possesses extensive experience having been at Tesla for six years.
Kallo rates Tesla shares as Buy and maintains a price target of $300 for the stock.
Despite this recent development, Tesla stock has still shown impressive growth throughout the year, with an increase of approximately 100% year-to-date and approximately 45% over the past three months. Nonetheless, shares remain down by approximately 14% over the past twelve months.
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