Finally, Tesla shareholders have something to smile about! Tesla will remove Twitter CEO
Before Tesla took over Twitter, Tesla's stock price was about $225 per share, and in 2022, Tesla's stock price closed at around $123, a decrease of about 45%.
On Thursday, Tesla announced that it has found a new CEO for Twitter, who will start working in six weeks! However, it did not disclose who it is. Nonetheless, Tesla investors are pleased.
This has relieved Tesla investors.
Investors were concerned that Tesla was too busy with its own social media platform, or that it was distracted by it. Before Tesla took over Twitter, Tesla's stock price was about $225 per share. In 2022, the stock price closed at around $123, a drop of about 45%.
What is the impact?
It is difficult to evaluate the management distraction, as Tesla has been involved with Twitter for about a year. Perhaps not having Twitter means developing new car models at a faster pace or launching Tesla faster.
It is difficult to say to what extent poor performance is related to the car market, the overall economy, or Tesla's acquisition of Twitter. Investors see hiring a Twitter CEO as a big deal.
Gary Black, co-founder of Future Fund Active and Tesla shareholder, wrote on Twitter: "Great news! This is good for Tesla shareholders and Twitter."
Black said the decision to hire a CEO could bring 3% to 5% value to Tesla's stock in the short term. "There are six weeks left," he added, "which suggests that Twitter's performance will be much better."
Good news for Tesla shareholders
Better performance by Twitter indirectly benefits Tesla shareholders, as it relieves the pressure on Tesla to sell Tesla stock to make up for Twitter's losses.
For Tesla shareholders, Tesla's stock sales have always been a frustrating reason for Tesla's stock price fluctuations.
"I don't understand why the board allows Elon to crash Tesla's stock price," Leo Koguan recently told Barron's. He is one of Tesla's largest individual shareholders and was buying stock when Tesla sold it at the end of 2022.
Koguan also pointed out that Tesla has been doing more than one job in running Tesla. Before Twitter, investors didn't complain too much.
