Tesla (TSLA) shares’ valuation reportedly surged by several billion dollars following billionaire Elon Musk’s announcement of a new Twitter CEO to replace him.
What’s the big deal?
As previous reports suggested, CEO Musk’s Twitter acquisition adversely affected the electric vehicle giant’s share price.
For starters, CEO Musk sold billions of dollars worth of his Tesla holdings to finance the Twitter acquisition last year. Additionally, Tesla shares decreased due to investors’ waning faith in the automaker as its CEO had to devote more time to “fixing Twitter.”
Tesla investors even demanded stronger CEO commitment from Elon Musk in an open letter on April 25.
Last year, CEO Musk assured investors that he had started seeking a new Twitter CEO to replace him.
Finally, the Tesla boss revealed today that he has a replacement and will leave his position as the social media platform CEO at the end of the month.
Musk has not yet disclosed the identity of the new Twitter CEO. However, he asserted that he would still be active as executive chair and CTO on the social media platform. Therefore, he will continue to devote considerable time to Twitter.
See Also:
- Tesla shares fell 28%, since CEO Elon Musk’s Twitter acquisition
- Tesla investors demand stronger CEO commitment in an open letter
- Tesla CEO Elon Musk claimed, Twitter is ‘Trending to Breakeven’ following a bankruptcy warning
- CEO Elon Musk prioritizes Tesla over Twitter, per internal notes
- Elon Musk sells another $3.6 billion in TSLA stock to finance Twitter
Nevertheless, the announcement apparently boosted Tesla’s share price with an approximately 1% increase or $5 billion worth of valuation.
