Elon Musk’s selection of a new CEO for Twitter could remove a major distraction for the billionaire and allow him to focus more on Tesla Inc., which has been hit hard by declining demand for its electric vehicles, analysts said. battling. Twitter’s billionaire owner said Thursday he has found a new chief executive officer to take the reins at the social media company, which is now owned by Musk’s newly founded X Corp.
Shares of the world’s most valuable electric vehicle maker, which have risen 40 percent this year, rose about 2 percent in trading before the bell on Friday. The stock had its worst year in 2022, plunging 65 percent amid Musk’s on-again, off-again offers for Twitter.
Ever since Musk bought Twitter in a $44 billion deal, Tesla investors have been concerned that he won’t be able to devote his full attention to the company, which is in a price war with upstarts and legacy automakers.
“It’s a partial positive for Tesla shareholders because he’ll be spending a little more time at Tesla,” said Gene Munster, managing partner at Deepwater Asset Management. “However, there are other things competing for his time.”
Musk said without naming anyone that he has found a new CEO for Twitter. The Wall Street Journal reported that Comcast Corp NBCUniversal executive Linda Yacarino was in talks for the top role at the social media platform.
The billionaire said he would take up the role of chief technology officer at Twitter.
“Tesla investors are likely to celebrate the move as well, given Musk’s very pragmatic approach on Twitter has taken his eyes off this EV giant,” said Hargreaves Lansdowne analyst Sophie Lund-Yates.
Although Twitter has taken up much of Musk’s time since its acquisition, he still actively manages several other businesses such as SpaceX and Neuralink. Musk recently formed an AI company called TrueGPT to compete with OpenAI’s ChatGPT and Alphabet Inc’s Bard.
Musk’s association with Twitter has been pretty chaotic. He has slashed thousands of jobs at the social media company, fired its top executive team including its CEO, and made several changes to its policies and strategy to rely less on ads and more on subscription money.
– Reuters
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