Tesla’s (TSLA) shares were down in early trading Monday after a short rally in pre-market trading as one of Elon Musk‘s polls on Twitter resulted in a majority of users voting for Musk to step down as head of Twitter. An overwhelming 57.5% of users voted yes. Musk also promised to “abide by the results of this poll.”
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Tesla’s investors have been concerned that Twitter is taking up too much of Musk’s time resulting in Tesla getting ignored.
If Musk does decide to abide by the results of this poll, it would mark the end of his 53 days as the head of Twitter. His tenure so far has been marked by widespread layoffs at the social media platform, chaotic policy changes, and alienating advertisers in the process.
Musk’s Chaotic Reign at Twitter is Dragging Down Tesla
Musk’s reign at Twitter has been an ever-present overhang on TSLA, continuously pressurizing the stock. Shares of TSLA have hit a 52-week low this year and have already lost more than 60% in value.
The fall in TSLA shares has been a result of TSLA investors wondering whether Musk is spreading himself too thin between the two companies.
Even longtime major TSLA investors like Ross Gerber have suggested that Tesla should probably appoint an interim CEO.
According to Reuters, the poll results resulted in Wedbush analyst Daniel Ives commenting, “It appears Musk’s reign as CEO of Twitter will come to an end and thus be a major positive for Tesla’s stock, starting to slowly remove this albatross from the story. Musk is Tesla and Tesla is Musk.”
Ives has a Buy rating on TSLA stock with a price target of $250 implying an upside potential of 66.4% at current levels.
Wall Street analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 18 Buys, nine Holds, and two Sells.
