By
Bena Ilyas
April 23rd, 2024
The biggest beneficiary of this move in the long term will be Tesla shareholders, considering the firm is the only publicly listed entity tied to Elon Musk
The shares of American multinational technology company Tesla Inc (NASDAQ: TSLA) are seeing an impressive uptick as investors appear elated that the company’s Chief Executive Officer, Elon Musk is setting his priorities right. As reported earlier by Coinspeaker, the iconic entrepreneur and founder said he is stepping down from his role as the CEO of Twitter, the micro-messaging platform he acquired more than a year ago.
The announcement from Musk detailed that the new CEO is set to resume office in about 6 weeks while his own role will be relegated to Executive Chairman and CTO. As an engineer that he is, Musk said he will now be overseeing the product, software and sysops for the company.
While there are different reactions to the revelations from the Twitter CEO with many applauding the move. However, the concerns as to what the future of the company will be like under the new CEO remains a major source of speculation, however, for Tesla investors and shareholders, this is a welcome development.
The Tesla stakeholders have been concerned that there has been a lot of distraction for Musk who is joggling affairs between Tesla, SpaceX, and Twitter. While these companies are at the forefront of his agenda, he is also overseeing The Boring Company and Neuralink, a move that Tesla’s shareholders believe is making him not focus on the immediate challenges of the electric car company.
“Corporate boards can and should intervene if a chief executive appears to be distracted or overly focused on other ventures. Yet, the Board has permitted Elon Musk to run multiple companies, leading to an inability to address the multiple strategic and competitive issues facing Tesla,” a group of Tesla shareholders expressed their concerns about Musk’s divided attention in a letter.
Tesla Shares and the New Growth Track
At the time of writing, Tesla shares are up by 0.96% in the pre-market, an uptick that compliments the more than 2% upsurge from the Thursday trading session.
This growth in Tesla shares may indicate a new dawn for the stock that has been greatly devalued over the past year.
Musk wants to hand over the reins of affairs to an entirely new figure who is tipped to be Linda Yaccarino, the Chairman of Global Advertising and Partnerships at NBCUniversal. By speculations, the role of Linda is expected to supersede that of Musk in the day-to-day administration of the firm, giving the Chairman more time for his other ventures.
The biggest beneficiary of this move in the long term will be Tesla shareholders, considering the firm is the only publicly listed entity tied to Elon Musk. By outlook, Tesla will seek to start gradually recouping the more than $600 billion it has lost in its market capitalization since Musk’s acquisition of the social media firm was finalized.