Elon Musk’s recent announcement of a new CEO for Twitter could be a positive move for Tesla, according to analysts. The billionaire’s purchase of Twitter for $44 billion had caused concern among investors that he was not giving Tesla the attention it needed. The electric vehicle maker has been struggling with a drop in demand for its cars and is in competition with both start-ups and legacy automakers. Gene Munster, Managing Partner at Deepwater Asset Management, stated that the new CEO appointment could be a “fractional positive for Tesla shareholders because he will likely spend a little bit more time on Tesla.” While Musk is still involved with several other businesses, including SpaceX and Neuralink, analysts believe his hands-on approach at Twitter had led to concerns that his focus was not solely on Tesla.
Although Musk has been actively managing Twitter since its takeover, he has made several changes to its policies and strategy to rely less on ads and more on subscription money. He has also slashed thousands of jobs at the social media company and fired its top executive team, including its CEO. The Wall Street Journal has reported that Comcast NBCUniversal executive Linda Yaccarino is in talks for the top role at the social media platform, but Musk has not yet confirmed the appointment.
Tesla’s stock, which has had a difficult year, losing 65 percent in 2022, rose about 2 percent in trading before the bell on Friday. Despite this, there are still concerns that Musk’s attention may be divided among his various businesses. He recently formed an AI company called TruthGPT to take on OpenAI’s ChatGPT and Alphabet’s Bard. However, analysts believe that with a new CEO in place at Twitter, Musk’s focus on Tesla could be increased. Hargreaves Lansdown analyst Sophie Lund-Yates stated that “Tesla investors are likely to celebrate this move too, with Musk’s very hands-on approach at Twitter leading to concerns he had taken his eye off the ball at this EV giant.”
In conclusion, while Elon Musk’s purchase of Twitter has caused concern among Tesla investors, the appointment of a new CEO could be a positive step towards increasing Musk’s focus on the electric vehicle maker. Despite his involvement with several other businesses, analysts believe that a new CEO for Twitter could allow Musk to concentrate more on Tesla, which has been struggling with a drop in demand for its cars.
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