Musk scaling back at Twitter is a “major step forward” for Tesla investors, says Wedbush analyst Dan Ives.
Topline
Tesla CEO Elon Musk’s announcement that he will soon step aside as Twitter CEO will add billions in market value to the electric vehicle giant, according to one prominent analyst covering Tesla, whose investors are beginning to shake off their collective Twitter headache.Key Facts
The removal of the “lingering albatross” of Musk’s tenure as Twitter CEO adds roughly $15 per share for Tesla, Wedbush analyst Dan Ives wrote in a note to clients Friday, referring to Musk’s Thursday afternoon tweet indicating he hired a CEO for Twitter who will start at the end of June, though Musk will remain chairman of the social media company’s board and its product chief.
A $15 add to Tesla’s current stock price represents about $47 billion in fresh market capitalization, bumping Tesla to a $586 billion valuation.
