Tesla CEO Elon Musk’s announcement that he will soon step down as CEO of Twitter will add billions of dollars to the electric car giant’s market capitalization, according to a prominent analyst covering Tesla.
Highlights
- Dan Ives, an analyst at Wedbush, wrote in a note to clients on Friday, referring to tweet from Musk on Thursday afternoon noting that he has named a Twitter CEO who will start at the end of June, though Musk will remain the social media company’s chairman and chief product officer.
- The $15 increase in Tesla’s current share price represents a new market capitalization of about $47 billion (€43 billion), bringing Tesla’s valuation to $586 billion (€538 billion).
- The initial market reaction to Mr. Musk’s low Twitter activity was positive: Shares were up 2% within 12 minutes of Mr. Musk’s tweet and were up another 2% at the start of the week on Friday.
- Ives said this is a “huge step forward” for Tesla, as Elon Musk has been “trying to balance Twitter, Tesla, and SpaceX as CEO, which is an impossible task that should have changed.”
- Tesla shares fell 72% from an all-time high in 2021, after Mr. Musk took over Twitter and became its CEO, selling about $23 billion of his shares in Tesla to finance the purchase and setting up a series of controversial and politically motivated policies. .
to monitor
Linda Iaccarino, the head of advertising at NBCUniversal, has been chosen by Musk to succeed him as the head of Twitter, according to multiple reports.
main context
Tesla, one of the worst performers in the S&P 500 last year, lost nearly $800 billion (€735 billion) in market value between the time Musk disclosed his stake in Twitter in April, and the end of the year. Shares of the automaker are up 60% this year on the strength of its first two earnings reports.
A large number
58.3%. It’s the part of Musk’s fortune (179.5 milliards of dollars, so it’s 164.8 milliards of euros) that is dear to Tesla’s participation, contre seulement 5% for Twitter, because of the calculating effects of Forbes en Mars. Elon Musk was the second richest man in the world until Friday, and he was the richest person alive for most of 2021 and 2022, with a fortune of $320 billion (€294 billion) at the end of 2021.
Important quote
“I honestly don’t want to be a CEO of a company,” Elon Musk said last November in a Delaware court, promising to find “someone else to run Twitter” at an unspecified date.
Translated article from the American magazine Forbes – Author: Derek Saul
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