On Sunday, Twitter CEO Elon Musk conducted a poll asking Twitter users if they want him to continue running the social media platform. Majority of responders (57%) voted for him to step down.
Should I step down as head of Twitter? I will abide by the results of this poll.
— Elon Musk (@elonmusk) December 18, 2022
Musk started the poll shortly after Twitter announced the “promotion of alternative social platforms policy”, which prohibits users from linking to other social media platforms. The policy received a lot of backlash, prompting Musk to reassess his position as the social media company’s head.
The tech entrepreneur, who also is the CEO of the world leading electric vehicle company Tesla, closed Twitter’s $44 billion deal early November, and has initiated series of controversial changes to the platform.
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In late October, Musk unveiled plan to charge Twitter users $8 verification fee as new means of generating revenue for the company following the exit of advertisers. Majority of advertisers on Twitter had quit as concern grew about the platform’s policies following Musk’s takeover.
On Thursday, Twitter suspended the accounts of some journalists who Musk had accused of doxxing him, or tracking his location and publishing it online. The move was also widely condemned as an attack on “free speech,” which he said he was buying Twitter to promote. But besides the controversies emanating from the changes being introduced by Musk, analysts see Tesla as the major reason why he is trying to step down from his position as Twitter chief executive.
“While clearly unconventional the Musk CEO poll is a sign that the noise is growing louder and louder given the spider web of Twitter and Tesla weakness. Poll results will dictate if Musk stays officially as CEO of Twitter….a big moment for this Twitter situation,” Wedbush analyst Dani Ives wrote.
Tesla has been the biggest victim of Musk’s Twitter adventure. The automaker has lost more than 60% of its market capitalization since Musk began the journey to purchase Twitter in April. Investors, worried about Tesla being starved of Musk’s attention because he is spending more time on Twitter, have pressured him to step down.
Musk usually conducts a poll seeking users’ opinion before he makes some decisions on Twitter. He said Monday that “going forward, there will be a vote for major policy changes.” This suggests that the billionaire will likely heed the outcome of the poll.
With majority of responders voted for Musk to step down as the head of Twitter, both analysts and investors believe that Tesla shares will climb back to their former position in the market.
“If Musk leaves as Twitter CEO and appoints someone else (social media background ideal) this would be a major positive for Tesla shares as the Twitter overhang would be significantly reduced clearly in our opinion,” Ives added.
Gary Black, investment advisor and managing partner at the Future Fund, said the Twitter overhang could partially lift once Elon appoints a new CEO, although he still has to fund Twitter’s massive losses, which could worsen. Tesla trading window is now closed to Elon until late-Jan. We believe Tesla brand risk from the Twitter chaos will ease once Elon steps down, he added.