Pat Gelsinger and Carlos Tavares had the same big problem: Morning Brief

Published On Dec 3, 2024, 6:00 AM

Pat Gelsinger, CEO of Intel, and Carlos Tavares, CEO of Stellantis, both resigned following significant underperformance of their companies' stock prices compared to the broader market. Stellantis' stock is down 47% in 2024, and Intel's is down over 50%, while the S&P 500 is up over 25%. Board dissatisfaction seems to be the common thread in their departures, as both companies faced existential challenges and the need for effective turnaround strategies, which ultimately were not well received by their boards.

Stock Forecasts

The resignations of these high-profile CEOs indicate significant volatility and potential mismanagement within both companies. With the current challenges facing both Intel and Stellantis, investors may want to proceed with caution. Falling stock prices paired with leadership changes often indicate deeper issues that could take time to resolve, potentially leading to further lack of investor confidence in both companies.

Stellantis, facing leadership challenges and a need for a renewed corporate strategy, may struggle to regain investor confidence in the near term. The departure of CEO Carlos Tavares during a time of major stock decline could signal more volatility ahead. Investors may be wary of the company until a new strategy and leadership is firmly established.

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(Bloomberg) -- Intel Corp. Chief Executive Officer Pat Gelsinger was forced out after the board lost confidence in his plans to turn around the iconic chipmaker, adding to turmoil at one of the pioneers of the technology industry.Most Read from BloombergRiyadh Metro Partially Opens in Bid to Ease City’s Traffic JamsAs Wars Rage, Cities Face a Dark New Era of Urban DestructionThe clash came to a head last week when Gelsinger met with the board about the company’s progress on winning back market s