The billionaire Elon Musk announced on Tuesday that he will stand down as Twitter Inc.’s CEO once he finds a successor, although he will continue to oversee several crucial departments of the social media network.
Some investors have questioned if Musk is too preoccupied to effectively operate his electric car company Tesla Inc TSLA.O, in which he is intimately engaged in manufacturing and engineering. Musk’s $44 billion purchase of Twitter in October has been marred by chaos and controversy.
Musk has utilized Twitter surveys to make other choices on the social media network, including reactivating Donald Trump’s account and the accounts of other banned users.
He made fun of a story this week that he was seeking a new CEO for Twitter by ridiculing it on Twitter with a winking emoji.
Analysts have noted that Musk’s electric car business Tesla’s stock price has fallen by one-third since Musk took over Twitter, and some have speculated that the board of Tesla placed weight on Musk to resign from his position there.
The situation facing Tesla investors, according to Wedbush analyst Dan Ives, is “definitely a good move in the right direction to put a halt to this dreadful nightmare scenario,” he said on Tuesday. After publishing his most recent survey, Musk engaged in a conversation with users, reiterating his earlier cautions that the platform could be having financial problems.
Shortly after attempting to get out of yet another scandal, the erratic businessman tweeted his poll on his retirement. Twitter users were informed on Sunday that they will no longer be allowed to advertise material from other social media platforms.
A few hours later, Musk appeared to change his mind, stating that the regulation will only apply to accounts whose “main goal is the support of competitors.”
The proposed restriction sparked shouts of protest, and even Twitter founder Jack Dorsey, who had supported Musk’s acquisition, was perplexed by it.
Researcher Ives stated that “marketers have run for the highlands and squarely placed Twitter in the red ink.” Twitter “may be on track to lose over $4 billion annually.”
Musk declared shortly after gaining control of the network that it would cost $8 per month to confirm users’ identities, but he had to halt the “Twitter Blue” plan due to an unseemly flurry of false accounts. Since then, it has been rebuilt. On November 4, Twitter cut half of its 7,500-person workforce after Musk said the firm was losing $4 million every day.
Musk also restored Trump’s profile, even though the former US president had claimed he had no interest in the social media site and that Twitter would no longer be used to counter Covid-19 misinformation.
He recently canceled the identities of many journalists after claiming they had released information on his personal jet’s activities, putting his family at risk. Some of the accounts that had become banned have been reinstated.
According to her spokeswoman, Roberta Metsola, the leader of the European House, invited Elon Musk to appear before the assembly in a letter on Monday.
Musk’s reaction was not known even though the legislature lacks the authority to force him to appear.