Wednesday, February 8, 2023
HomeMarketTesla Investors Will Be Closely Watching This Poll on Twitter

Tesla Investors Will Be Closely Watching This Poll on Twitter

Elon Musk put his leadership of Twitter up to a user poll on Sunday.

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Constanza Hevia/AFP/Getty Images

Tesla
investors want the Twitter overhang plaguing the stock to abate. They might get what they’re wishing for.

Tesla
(ticker: TSLA) CEO Elon Musk ran a poll on Sunday evening asking if he should step down as head of Twitter, adding, “I will abide by the results of this poll.”

As of early Monday, nearly 17.4 million votes had been cast. “Yes” was leading “No” 58% to 42%. The poll was due to close before the start of trading Monday.

Musk has more than 120 million followers on Twitter. Tesla investors were the ones likely voting “Yes.” Tesla stock has been hammered since Musk took over, falling about 33%. The
Nasdaq Composite
has declined about 1% over the same span.

Twitter has been a problem for Tesla stock since Musk took over in late October. Musk has been selling Tesla stock, without much warning, apparently to cover mounting losses at his social media platform. What’s more, several Wall Street analysts, including Goldman Sachs’ Mark Delaney, Pierre Ferragu from New Street Research and Wedbush’s Dan Ives, have written about how Musk’s management of Twitter was impacting Tesla’s brand image.

The poll is “a positive surprise for sure,”
Future Fund Active ETF
(FFND) cofounder Gary Black told Barron’s.

A positive surprise should mean a positive stock price reaction Monday. Just how much is hard to say. Tesla stock is roughly $75 below where it was when Musk took over Twitter.

Tesla stock was rising 4.8% in premarket trading Monday.

Coming into Monday trading, Tesla stock has dropped about 57% this year, while the
S&P 500
is down about 20%. Aside from Tesla-specific issues, Inflation and interest rates have hit car-related stocks harder than most.
General Motors
(GM) and
Ford Motor
(F) shares have fallen roughly 35% in 2022.

Ives, Ferragu and Delaney all rate Tesla stock Buy. About 63% of analysts covering Tesla stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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