Since CEO Elon Musk took over Twitter, Tesla stock has dropped by more than 45% in about two months. Since Musk began investing in Twitter in January, the total value of the company’s stock has decreased by more than 65%. The tech-heavy Nasdaq, on the other hand, has fallen approximately half as far during that time. When Twitter finds a replacement, Musk said on Tuesday that he would step down as CEO. Tesla stock briefly rose as a result of the news before falling once more. Fears of a recession, increased competition, and production difficulties brought on by the pandemic have all contributed to a decline in demand for electric vehicle company. In addition, a number of major investors and analysts have strongly criticized Musk for what they perceive to be a lack of focus on Tesla, stating that the company requires leadership in the face of a challenging business environment.
Despite a challenging year for the larger auto industry, sales of electric vehicles rose in 2017. And Tesla keeps dominating the market for electric cars.
What is Tesla’s bad news? As competition increases. At the top end of the market, well-known brands like Mercedes-Benz, BMW, Audi, Lucid, Rivian, and Polestar are beginning to encroach on the turf of Tesla’s more expensive vehicles.
According to Brian Moody, executive editor of Autotrader, “We have a number of automobiles that are competing on an equal level with Tesla in that they’re performance oriented, they’re luxury.”
Musk has long been the CEO of several businesses. However, his acquisition of Twitter last year is not comparable to his management of, say, SpaceX.
One of the reasons why so many people want a Tesla is the reputation that Musk has among his supporters as a genius and a visionary. From his position of authority atop the social media behemoth, Musk has now effectively turned into a professional Twitter troll, publishing provocative messages and gleefully endorsing some right-wing viewpoints.
In order to finance his acquisition of Twitter, Musk also had to sell billions of dollars’ worth of Tesla stock, which damaged the stock. Musk’s personal wealth decreased significantly, yet he still possesses more over $100 billion.
To the dismay of some of his staunchest supporters, Musk’s time on Twitter is taking away from his time working on Tesla
Elon Musk claims that after he appoints a successor, he will step down as CEO of Twitter. Technology Elon Musk claims that after he appoints a successor, he will step down as CEO of Twitter. Many Tesla shareholders are pressuring Musk to do what he has promised and pick a new CEO of Twitter and resign down from the social media giant.