Tesla (TSLAShares surged Thursday after CEO Elon Musk announced that a new person would take over Twitter in the coming months.
X
Musk took to Twitter Thursday afternoon to say that Company X (formally known as Twitter) has hired a new CEO, who will begin the role in about six weeks. Tesla’s CEO declined to say who the new head of Twitter would be.
Musk added that his role at Twitter will transition to chairman of the board and chief technology officer. He added that he will oversee products, software and system operators.
On October 28, Musk took over Twitter by buying the social media platform for $44 billion. Part of the funding for the deal came from the sale of some of Musk’s stake in Tesla. That, combined with his focus on Twitter, has worried some longtime Tesla stock bulls, who believe the negative attention is weighing on Tesla stock.
Musk indicated on his social media sites that he intends to continue to play an active role. He will continue to tweet freely.
Megacap leads the fragmented market.Tesla talks about Elon Musk’s Twitter news
tesla stock
Tesla shares surged 2.1 percent to 172.08 in Thursday’s trading, but almost all of the gain came in the final minutes after Musk’s tweet. TSLA shares edged higher in after-hours trading.
The EV giants are up about 67% from their January lows, but have retreated significantly since the end of March. Tesla shares are still below the 50-day and 200-day moving averages.
If the stock continues to rally, it could form a double dip at the 207.89 buy point. However, it remains very uncertain which direction the stock will go.
Tesla ranks fourth in IBD Automaker industry association. TSLA has an overall rating of 59 out of 99. It also has a relative strength rating of 20 points. EPS rating is 93 out of 99.
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