Tesla stock fell Friday after CEO Elon Musk named a new head of Twitter.
Musk wrote on Twitter Friday he has hired Linda Yaccarino, NBCUniversal's advertising chief, as the new CEO for X Corp., formally known as Twitter. The Tesla chief added Yaccarino will focus on business operations while he will work on product design and new technology.
"Looking forward to working with Linda to transform this platform into X, the everything app," Musk wrote Friday.
Tesla stock, which had jumped early Friday, fell in the afternoon. On Thursday, Musk had announced a new Twitter CEO would begin her duties in around six weeks. He added that his role at Twitter will transition to being executive chair and chief technology officer at the company.
The Wall Street Journal reported Thursday night Yaccarino was in talks to be the new Twitter CEO. Yaccarino played a key role in launching the Peacock streaming service.
Musk took over Twitter on Oct. 28 purchasing the social media platform for $44 billion. The purchase was in part financed by Musk selling off some of his Tesla stock. This along with his focus on Twitter has worried some longtime Tesla stock bulls, with the belief negative attention is weighing down Tesla stock.
Musk signaled he'll remain at active role at his social media site. He'll also likely continue to tweet freely.
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Tesla Stock
Tesla stock jumped 2.8% early before falling 2.3% to 168.08 Friday during market trade. On Thursday, TSLA popped 2.1% to 172.08, with nearly all of the gain coming in the last few minutes following Musk's tweet regarding a new Twitter CEO.
The EV giant is up around 67% from a January low, but has retreated considerably since the end of March. Tesla stock remains below its 50-day and 200-day moving averages.
If shares continue to rebound, it could potentially form a double-bottom base with a 207.89 buy point. But which direction the stock might go remains very uncertain.
Tesla ranks fourth in IBD's Auto-Manufacturers industry group. TSLA has a 59 Composite Rating out of 99. The stock has also has a 20 Relative Strength Rating. The EPS Rating is 93 out of 99.
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