{"id":7796,"date":"2023-05-12T10:49:34","date_gmt":"2023-05-12T14:49:34","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/heres-how-much-tesla-stock-could-gain-as-musk-steps-down-as-twitter-ceo\/"},"modified":"2023-05-12T10:49:34","modified_gmt":"2023-05-12T14:49:34","slug":"heres-how-much-tesla-stock-could-gain-as-musk-steps-down-as-twitter-ceo","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=7796","title":{"rendered":"Here’s How Much Tesla Stock Could Gain As Musk Steps Down As Twitter CEO"},"content":{"rendered":"
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Topline<\/h2>\n

Tesla CEO Elon Musk\u2019s announcement that he will soon step aside as Twitter CEO will add billions in market value to the electric vehicle giant, according to one prominent analyst covering Tesla, whose investors are beginning to shake off their collective Twitter headache.<\/p>\n

Key Facts<\/h2>\n
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The removal of the \u201clingering albatross\u201d of Musk\u2019s tenure as Twitter CEO adds roughly $15 per share for Tesla, Wedbush analyst Dan Ives wrote in a note to clients Friday, referring to Musk\u2019s Thursday afternoon tweet<\/a> indicating he hired a CEO for Twitter who will start at the end of June, though Musk will remain chairman of the social media company\u2019s board and its product chief.<\/p>\n<\/p><\/div>\n

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A $15 add to Tesla\u2019s current stock price represents about $47 billion in fresh market capitalization, bumping Tesla to a $586 billion valuation.<\/p>\n<\/p><\/div>\n

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The initial market reaction to Musk\u2019s cutting back at Twitter was positive, with shares gaining 2% in the 12 minutes of trading following Musk\u2019s tweet and rising a further 2% early Friday.<\/p>\n<\/p><\/div>\n

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It\u2019s a \u201cmajor step forward\u201d for Tesla as Musk is \u201cfinally reading the room that has been around this Twitter nightmare and trying to balance Twitter, Tesla and SpaceX as CEO, an impossible task that needed to change,\u201d Ives explained.<\/p>\n

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Shares of Tesla sank as much as 72% from an all-time high in 2021 after Musk bought Twitter and installed himself as its CEO, selling off about $23 billion of his Tesla stock to help fund the purchase and instituting a variety of controversial, politically motivated policies.<\/p>\n<\/p><\/div>\n<\/div>\n

What To Watch For<\/h2>\n

NBCUniversal\u2019s advertising chief Linda Yaccarino is Musk\u2019s pick to succeed him as Twitter\u2019s head honcho, according to several reports. Musk liked a tweet<\/a> singing Yaccarino\u2019s praises as a logical pick to lead Twitter, indicating Yaccarino is likely in fact his choice.<\/p>\n

Key Background<\/h2>\n

One of the worst-performing stocks on the S&P 500 last year, Tesla shed nearly $800 billion in market cap from when Musk first disclosed his stake in Twitter in April to year\u2019s end. Shares of the automaker are up about 60% this year thanks to resilient profit numbers in its first two earnings reports.<\/p>\n

Big Number<\/h2>\n

58.3%. That\u2019s how much of Musk\u2019s $179.5 billion fortune is tied up in his stake in Tesla, compared to just 5% for Twitter, as of Forbes<\/em>\u2019 March calculations. The second-richest man in the world as of Friday, Musk was the wealthiest person alive for much of 2021 and 2022 and was worth as much as $320 billion in late 2021.<\/p>\n

Crucial Quote<\/h2>\n

\u201cI frankly don\u2019t want to be CEO of any company,\u201d Musk testified last November in Delaware court, vowing to find \u201csomebody else to run Twitter\u201d at an undetermined time.<\/p>\n

<\/h2>\n

Who Is Linda Yaccarino? The Ad Executive Elon Musk Has Reportedly Chosen To Succeed Him As Twitter CEO (Forbes<\/em>)<\/p>\n

Market Reacts To Musk \u2018Antics\u2019: Tesla Slides To 2-Year-Low As Twitter Embroiled In Controversy (Forbes<\/em>)<\/p>\n

Tesla Board Member Jabs At Elon Musk As Questions About Twitter Distractions Mount (Forbes<\/em>)<\/p>\n<\/div>\n