The Effect of CEO Public Behaviour on the Company’s Valuation: The Case of Tesla and Elon Musk

Working Paper
Climate Econometrics
Data Science

O. Kvist

J.E. Vera-Valdés




We evaluate the hypothesis that CEO public behaviour affects their firms’ value by considering Tesla and Elon Musk. Several events involving public controversies by Elon happened from mid-October to early December 2023. In this period, Elon Musk was involved in controversies over erratic statements. Therefore, we evaluate its effect on Tesla’s valuation. We use high-frequency data since traditional event study is inefficient. We consider two jump test: the price test by Lee and Mykland and volatility test by Barndorff-Nielsen and Shepard. We find evidence of jumps in both following Elon controversies, indicating that investors consider alternative data in Tesla’s valuation.


The paper can be downloaded here.