The Tesla Inc (NASDAQ: TSLA) stock price edged 3.57% higher after the company’s CEO Elon Musk ran a poll on Twitter asking his followers if he should relinquish his role as CEO of the social media company to focus on Tesla.
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The controversial CEO said that he would abide by the poll results, which came out 57.5% in favor of him stepping down from his role as Twitter’s CEO. Now, it remains to be seen whether Musk will abide by the poll’s outcome as he had indicated.
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However, I believe the poll’s outcome will have little impact on Musk’s decision, even if he finally resigns as Twitter’s CEO. Musk’s decision will more likely be motivated by Twitter’s battered finances, which have affected his wealth and finances more than poll results.
Elon Musk sold his prized Tesla shares multiple times this year to fund his Twitter acquisition. The latest sale came just last week when he sold 22 million shares for $3.6 billion, which will likely go into Twitter after advertisers deserted the platform en masse.
The Tesla CEO is struggling to keep Twitter alive, and I believe he knows the best option for him right now is to step down as CEO of the social media company.
Furthermore, his Twitter sage has taken a toll on Tesla’s stock price, down 60.7% this year, as investors express their dissatisfaction with him serving as CEO of three massive companies.
Many have opined that Musk’s indulgence with Twitter has diverted his focus away from Tesla, which needs his undivided attention after missing Q3 delivery estimates.
Analysts predict EV manufacturers will have a tough time next year as the industry matures and competition heats up. A looming global recession will also affect consumer buying behaviors, with fewer people buying expensive EV cars in the middle of a recession.
Tesla may be particularly hit given that its target market of well-to-do middle-class families will be hard hit by the recession.
At this juncture, Elon Musk’s best bet is to resign as Twitter CEO, but there is no guarantee that he will. However, the mounting pressure from Tesla investors may leave him with little choice.
*This is not investment advice.
Tesla stock price.
The Tesla stock price edged 3.57% higher to trade at $155.60, from Friday’s closing price of $150.23.
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