Elon Musk stepping down as Twitter’s CEO could be beneficial to Tesla stock, as investors want Musk to concentrate more on the electric-vehicle giant, according to Loup’s Gene Munster.
“It’s a positive for Tesla, because despite all of Elon’s flaws, investors just want him to be more involved with Tesla. He just has this magnetic personality – debatable – but Tesla investors believe that. So having more of his time apply to Tesla helps with the multiple around Tesla,” Munster said in an interview with CNBC on Monday.
Musk pulling away from Twitter could be bullish for Tesla, Munster said, as the electric cars behemoth has grappled with plunging stock this year while Musk altered his attention to Twitter.
So far, Tesla stock has slumped 60% this year, which Munster largely attributes to Musk’s deteriorating image as Twitter’s CEO.
“I believe over the last seven weeks as he’s been more engaged with Twitter. He’s damaged Tesla’s brand. He’s become more political, and I think there’s a benefit to Tesla by him stepping back from Twitter,” he said. “I believe this is a big deal for Tesla investors.”
