Musk Chooses New Twitter CEO; Tesla Stock Rises
Tesla's stock went up on Friday because of Elon Musk's announcement of hiring a new CEO for Twitter. The name of the person was not revealed.
Musk, Twitter's present CEO, tweeted that he's thrilled to announce the appointment of a fresh CEO for X/Twitter. The new CEO will commence working in about six weeks!
Musk will become exec chair and CTO. He will supervise product, software, and sysops. This is his new role.
Tesla's tweet boosted their stock by 2% before the market closed last Thursday. On Friday morning, their shares went up more than 2%, despite a recall in China for a braking and acceleration problem.
Musk tried to buy Twitter on April 14, 2022. Tesla stocks were at $333 then. But Musk had to sell shares to pay for it, and the stocks have lost 50% of their value. The purchase ended in October, but people still talk about how it affects Tesla's stocks. They call it the "Twitter overhang."
Dan Ives from Wedbush securities said that because Musk is no longer CEO of Twitter, it's good news for Tesla's stock. He thinks this will add $15 to each share because there won't be any more problems with Musk and Twitter.
Musk hasn't said who'll be the new CEO yet. But people think Linda Yaccarino might be it. She was the head of advertising at NBCUniversal. On Friday, NBCUniversal said Yaccarino's leaving right away.
After leaving Twitter, Musk will continue to be the CEO of SpaceX and Tesla.
The electric vehicle maker will get it at a critical time. The stock is in trouble due to a China recall, low demand in the U.S., and EV price competition.
During the last month, Tesla's shares dropped down up to 20%. This happened because the company did not perform as well as expected with gross margins in the first quarter.
Musk made things worse during the earnings call. He didn't help the situation.
Musk was asked about margins as the company lowers prices. It's hard to predict the margin.
Tesla will have their yearly meeting with their shareholders next Tuesday, May 16.
Elon Musk is the owner of SpaceX and the CEO of Tesla. He recently spoke at the E3 gaming convention in Los Angeles, California. Todd Howard, a famous game designer, also participated in the conversation. The event took place on June 13, 2019. A photograph of the event was taken by Mike Blake for Reuters.
Josh works for Yahoo Finance as a reporter.
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