New Twitter CEO May Allow Musk to Focus on Tesla Amid Softening Demand

[Edited] Elon Musk's recent appointment of a new Twitter chief may provide a significant advantage by freeing up the billionaire from a major distraction and allowing him to focus more on Tesla Inc, according to analysts.

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Tesla shares, which have seen a 40% increase this year, experienced a slight dip of about 2% as broader markets fell. This comes after a challenging year for the stock in 2022, where it lost 65% due to Musk's on-again, off-again offer for Twitter.

In a recent announcement, Musk revealed that Linda Yaccarino, an executive from NBCUniversal, will take over as Twitter's CEO while he assumes the role of chief technology officer at the company. This move is expected to be well-received by Tesla investors, who have expressed concerns about Musk's hands-on approach at Twitter potentially diverting his attention from the electric vehicle giant.

Sophie Lund-Yates, an analyst at Hargreaves Lansdown, commented, "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."

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Since Musk's acquisition of Twitter in a $44 billion deal, there have been concerns among Tesla investors that he may not be able to fully focus on the company, especially as it faces fierce competition from both upstarts and legacy automakers in the price war.

Gene Munster, managing partner at Deepwater Asset Management, acknowledged that Musk's increased attention on Tesla as a result of the Twitter CEO change is a positive for Tesla shareholders. However, Munster also noted that there are other commitments competing for Musk's time.

While Twitter has demanded much of Musk's attention since the acquisition, he still actively manages other businesses such as SpaceX and Neuralink. Recently, Musk also established an AI company called TruthGPT to rival OpenAI's ChatGPT and Alphabet Inc's Bard.

Musk's involvement with Twitter has been characterized by significant upheaval. He has implemented massive job cuts at the social media company, dismissed its top executive team (including the CEO), and made numerous changes to its policies and strategies, shifting the focus away from ads and towards subscription revenue.

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- Elon Musk's appointment of a new Twitter CEO is expected to free up his time and allow him to focus more on Tesla.

- Tesla shares experienced a slight dip following the announcement, despite a 40% increase this year.

- Tesla investors are likely to view this move positively, as concerns were raised about Musk's attention being divided between Twitter and Tesla.

Source: REUTERS