Tesla Analysts Applaud Musk's Exit As Twitter CEO: 'Finally Reading The Room'

Elon Musk stepping down as Twitter CEO heralds positive impact for Tesla Inc TSLA shares, according to Wedbush analysts.

Bullish Rating Intact: Wedbush maintained its outperform rating on the EV giant with a 12-month price target of $215.

What Do They Say: “We believe leaving earlier than originally thought by the end of the year is a positive development for Tesla as well as SpaceX with Musk needing to spend more and more time on these golden child platforms rather than Twitter,” said the three analysts including Daniel Ives, John Katsingris and Steven Wahrhaftig.

“With the tweet this afternoon, Musk’s reign as CEO of Twitter has finally come to an end and thus will be a positive for Tesla’s stock starting to finally remove this lingering albatross from the story,” the analysts said.

The decision is further a major step forward for Tesla with Musk “finally reading the room,” they added.

Musk had earlier conducted a poll in December on if he should step down as Twitter CEO for which 57% of respondents gave an affirmative response.

“Trying to balance Twitter, Tesla, and SpaceX as CEOs [is] an impossible task that needed to change,” they added.

Elon Musk announced Thursday that he is stepping down as CEO of Twitter. Musk didn’t reveal who he hired but said she will start within six weeks.

Price Action: On Thursday, Tesla shares closed 2.1% higher at $172.08 in the regular session, according to data from Benzinga Pro.

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