Stop Dumping Twitter Problems on Tesla

Let’s face it, the media is obsessed with Elon Musk. The business mogul’s Twitter takeover a mere 54 days ago has been a frustrating time for Tesla TSLA shareholders, a spiteful time for his critics, and an entertaining time if you’re like me – and have stopped keeping up with the constant, politically-fueled, noisy arguments across your timeline. Over the weekend, Musk ran a poll asking if he should step down as Twitter CEO, of which roughly 58% voted yes.

Over 17 million users took part in the poll, and several began speculating who would take over as chief executive if Musk did really follow through on his word. He was spotted at the World Cup with Donald Trump’s son-in-law Jared Kushner over the weekend, which caused speculation Kushner could be tapped as the new Twitter head. One thing remains certain, Musk has some brand issues to address.

Mind you – Musk floating the idea of stepping back cannot only be tied to the recent backlash. He told a Delaware court last month in a testimony that there’s been a burst of post-acquisition activity needed to reorganize Twitter, but he expects to reduce his time at the company following that.

There is ongoing debate regarding what “good” management at Twitter really means, and if its public perception is even capable of being entirely saved. Prior to Musk’s takeover, former CEO Parag Agarwal had big expectations as the social media’s leader after being promoted to replace Jack Dorsey. But with the nature of the social platform, he was dragged into the political antics of the beast, and heavily criticized by both sides of the aisle. But Tesla shareholders didn’t have much choice in these Twitter matters. The first result after searching “Elon Musk” on Google was an article: “Best EVs That Aren’t Tesla: Alternative Cars For Drivers Turned Off By Elon Musk.” It’s no secret investor sentiment at Tesla has recently taken a hit, especially with Musk dumping another $3.6B in shares last week. 

But while Musk is certainly doing neither company any favors from a PR standpoint, to blame him entirely for Tesla’s dismal year is lazy analysis. Through Monday’s close, shares are down 63% YTD, and 34% since Musk took over Twitter in October. If the acquisition was the entirety of the Tesla story, what about the other 29% lost in value this year? Or what about the vast selling that has been hitting the entire EV industry? Instead of making Musk the scapegoat, investors must start addressing the real, fundamental problems Tesla must begin working through. And maybe spend less time worrying about the whereabouts of Elon Musk’s private jet.

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