May 15, 2023
Since Elon Musk’s announcement that Linda Yaccarino will take over as CEO of Twitter, analysts believe the move will help Musk to focus more Tesla, which has faced significant challenges in recent months.
According to Sophie Lund-Yates, an analyst from Hargreaves Lansdown, this decision is expected to benefit both Twitter and Tesla. Lund-Yates noted 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.” Musk’s involvement with Twitter has been seen as a distraction by some, as he has been known to make controversial tweets that have caused volatility in the stock market.
While Deepwater Asset Management managing partner Gene Munster remarked on the news, saying, “This is a fractional positive for Tesla shareholders because he will likely spend a little bit more time on Tesla.” However, there are other things fighting for his attention.”
Tesla investors have previously raised concerns about Musk’s ability to fully focus on the firm since his $44 billion acquisition of Twitter. With Tesla embroiled in a pricing battle with both new and established automakers, there were growing fears that Musk’s focus might be distracted.
The sources for this piece include an article in Reuters.
