According to Loup’s Gene Munster, Elon Musk’s resignation as CEO of Twitter would increase Tesla stock because investors want Musk to concentrate more on the manufacturer of electric vehicles.
“Despite all of Elon Musk’s shortcomings, investors just want him to be more involved with Tesla, so it’s good for Tesla. Tesla investors think that he simply has a magnetic personality, though that claim is debatable. Thus, dedicating more of his time to Tesla will help with the numerous issues surrounding Tesla “Munster stated in a Monday interview with CNBC.
Munster suggested that Musk’s decision to distance himself from Twitter could be positive for Tesla, which has struggled this year as Musk focused more of his attention on Twitter.
Munster largely blames Musk’s deteriorating reputation as Twitter’s CEO for the 60% decline in Tesla stock so far this year.
“I think he’s been more active on Twitter over the past seven weeks. He hurt Tesla’s reputation. He’s turned more political, and I believe Tesla will benefit from him stepping away from Twitter “said he. I think this is significant for Tesla investors.
With Musk now in charge of Twitter, the social media company’s operations have undergone a comprehensive overhaul that includes extensive layoffs and drastic cost-cutting measures like not paying rent for Twitter’s offices.
A growing number of Tesla investors are calling for Musk to leave the social media company or appoint a new CEO as a result of his management style and his political tweets.
Musk posed the question to his Twitter followers on Sunday and promised to follow the results. After Musk’s poll revealed that 57.5% of respondents wanted him to leave Twitter, Tesla stock rose 2% on Monday.
Despite Musk selling off nearly $40 billion in Tesla stock over the previous 14 months, Munster continued by saying that he thought Musk would adhere to the poll’s findings.
“This is hidden by his one-of-a-kind way of doing things. It’s obviously unconventional for a CEO to put his position up for vote, and I believe Elon does it out of pure enjoyment “said he.