Tesla stock rises then reverses as Musk says ‘No one wants the job’

Tesla (TSLA) posted solid gains Monday morning, but turned to a loss midmorning as CEO Elon Musk announced he may be retiring from Twitter. Twitter users responded to a poll Musk posted on the social media platform on Sunday night. The majority of voters said Musk should step down from his role as CEO of Twitter.




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Over the weekend, Musk dominated the news cycle as a number of journalists suspended their Twitter accounts. After some back and forth about imposing new policies, Musk posted a poll on his Twitter account on Sunday night asking whether he should “step down as head of Twitter.”

As of Monday morning, 17.5 million Twitter users had responded to the poll, with 57.5% saying Musk should step down and 42.5% saying he should stay in the role.

“I will abide by the results of this poll,” Musk wrote on Twitter.

Tesla stock shot up about 4% in premarket trading Monday morning, but fell about 1% in late morning trading. recovering after a big defeat last week. TSLA fell more than 16% last week to its lowest point since November 2020. It was also the worst weekly decline for Tesla stock since March 2020.

Tesla’s stock boost also comes after Bloomberg reported late Friday that Tesla will build a new car factory in northeastern Mexico. The company is expected to make an announcement in the coming days. However, it is unclear which vehicles the factory will produce.

PepsiCo (PEP) also plans to roll out a total of 100 Tesla Semi trucks by 2023 and is already deploying 36, Reuters reported Friday.

Musk’s Twitter addresses a concern for Tesla Stock

Musk’s focus on Twitter has long worried Tesla stock bulls. Many are concerned that it will distract Musk from running Tesla and that the negative attention will weigh on Tesla stock.

Last week, Musk sold another 22 million shares of Tesla for about $3.6 billion. Musk has now sold a total of about $40 billion worth of Tesla stock in the past year.

(Twitter)

“The Twitter nightmare continues as Musk uses Tesla as his own ATM to continue funding the red ink on Twitter, worsening by the day as more advertisers flee the platform with growing controversy driven by Musk,” the longtime Tesla wrote. bullanalist Daniel Ives. Thursday.

Ives added on Monday that Musk “seems to finally be reading the room that has led to frustration around this Twitter nightmare that’s getting worse by the day.”

Also on Monday, Oppenheimer analyst Colin Rusch downgraded Tesla’s rating to outperform. Rusch wrote that the “increasing negative sentiment” on Twitter could persist in the long run. This, according to Rusch, could limit Tesla’s financial performance and drive down Tesla’s stock.

While Elon Musk said he would “commit” to the outcome of the Twitter poll, there are still many unknowns.

“As the saying goes, be careful what you wish for because you might get it,” Musk tweeted later on Sunday before adding that he has not yet chosen a new CEO.

“Nobody wants the job that can really keep Twitter alive. There’s no successor,” Musk said.

Follow Kit Norton on Twitter @KitNorton for more coverage.

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