Analysts have said the recent appointment of a new CEO for Twitter would help the tech leader, Elon Musk eliminate a significant distraction and give ample time to concentrate more on Tesla Inc.
The electric vehicle giant, Tesla has been struggling with declining demand for its electric vehicles which has since 2023 caused variation in prices in a bid to increase demand while making reasonable profit.
Reuters reported that Tesla’s stock, which has gained 40% this year, rose by almost 3% on Friday after the announcement of the new Twitter CEO.
According to reports, Tesla’s shares had their worst performance in 2022, losing 65%, as investors were concerned that Musk’s involvement with Twitter could divert his attention away from the company.
The purchase of Twitter by Musk in a $44 billion deal raised concerns that he would not be able to focus entirely on Tesla, which is currently engaged in a price war with both new entrants and established automakers.
Speaking about the new development, the Managing Partner at Deepwater Asset Management, Gene Munster said, “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 that are competing for his time.”
This publication recalls that Elon Musk who is the owner of Twitter announced that he has found a new CEO. He mentioned that he would now take the role of the Chief Technology Officer at the company.
An analyst, Sophie Lund-Yates said, “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.”