Twitter Elon Musk News: Elon Musk is Leaving His Position as CEO of Twitter. Tesla Stock Still Slid.
May 15, 2023
- What Happened:
Here is some positive Elon Musk Twitter news. Elon Musk’s announcement that he will take on a reduced role at Twitter following the appointment of a new CEO helped Tesla shares open higher on Friday. However, investors extrapolated too much from the most recent news, which caused shares to end lower.
This is what we do know. According to Musk, Linda Yaccarino will take over as Twitter’s CEO. While I concentrate on product creation and new technologies, she will largely be concerned with company operations.
Investors at first applauded the news. The price of Tesla (TSLA) stock rose $3.54, or 2.1%, to settle at $172.08 on Thursday. And on Friday, shares increased to start the day.
That was a wise decision. Tesla shareholders have almost begged Musk to lessen his involvement at Twitter. Since Musk’s involvement with the social network platform, they have been concerned about managerial distraction. A new CEO may also imply that the social networking site is operating better, lowering the probability that Musk will sell additional Tesla shares to cover losses.
However, the early profits vanished, and then some. Tesla shares fell $4.10, or 2.4%, to $167.98 on Friday, while the S&P 500 and Nasdaq Composite fell 0.2% and 0.4%, respectively.
Why the 180-degree turn? Some investors appear to be seeking hidden meanings in Twitter Elon Musk news regarding Yaccarino’s hiring, drawing links to the scheduling of Tesla’s annual shareholder meeting and other news items. The largest worry appears to be that Musk will stand aside as CEO of Tesla, maybe to focus on product development.
The game of connect the dots began on Thursday, when The Wall Street Journal reported that CFO Zachary Kirkhorn may be Musk’s replacement. It was released before the Twitter CEO announcement and comes only days before Tesla’s 2023 annual shareholder meeting on May 20. The close proximity to the Twitter announcement fueled rumors that Musk might also resign from Tesla.
- What To Expect?
The rumblings were severe enough that investors and experts felt compelled to comment. Gary Black, the co-founder of Future Fund Active ETF (FFND), stated on Friday morning, linked to a news report on the probable transfer, that speculation that Musk would give up his post as CEO of Tesla in addition to Twitter is ridiculous.
Wedbush analyst Dan Ives was skeptical as well. Ives believes he has a greater chance of making the NBA Playoffs than Musk, who is stepping down from Tesla. He rates Tesla shares as Buy, with a price objective of $215.
He elaborated on those thoughts “First, Zach isn’t the natural successor. Tom Zhu is,” Black said. Zhu ran Tesla’s business in China and is now the senior vice president of the automotive business. “Second, Elon is giving up the Twitter CEO role. Why would he give up the Tesla CEO role as well?”
Those two do not believe Musk is leaving Tesla. However, it might be difficult to refute the colloquial negative. Nobody knows what Musk will do next. He will almost certainly remain CEO of his automobile firm.
Musk reacted to a post on the Twitter update indicating his commitment to Tesla on Friday with a simple “Yup.”
Maybe it will be enough to put a stop to the conjecture. Or perhaps not.