Snap up Tesla stock because a new Twitter CEO will allow Elon Musk to focus on his 'golden child', Wedbush says
Elon Musk's departure as Twitter CEO will boost Tesla's share price, according to Wedbush.
Musk said Thursday that he'd found a new boss for the social-media giant and that she'll start in around six weeks.
That announcement removes a "lingering albatross" for Tesla's stock, Wedbush's Dan Ives wrote.
Elon Musk's looming departure as Twitter CEO is good news for Tesla investors, according to Wedbush managing director Dan Ives.
Musk said Thursday that he'd found a successor to run the social-media company and that she will start in around six weeks, with the billionaire taking on a new role as Twitter's CTO and executive chair.
"Leaving earlier than originally thought is a positive development for Tesla as well as SpaceX with Musk needing to spend more and more time on these golden child platforms rather than Twitter," Ives wrote Thursday in a research note seen by Insider.
"With the tweet this afternoon, Musk's reign as CEO of Twitter has finally come to an end and thus will be a positive for Tesla's stock, starting to finally remove this lingering albatross from the story," Ives said.
Wedbush maintained its outperform rating for Tesla and shared a 12-month price target of $215, 25% above the $172.08 level the stock traded at as of Thursday's closing bell.
Musk's chaotic acquisition of Twitter has frustrated Tesla shareholders over the past year.
He sold billions of dollars worth of Tesla stock to fund the deal - and since he completed the takeover in October, many high-profile investors have said he cannot effectively run the three companies he's CEO of at the same time.
At the end of April, a group of 17 Tesla shareholders including big pensions and institutions called for the board to rein in Musk, accusing the world's second-richest man of neglecting his EV company.
Shares climbed 2% after Musk's announcement Thursday and edged up another 1% in Friday's premarket, trading at over $174 shortly after 4 a.m. Eastern Time.
Read more: Fans may think Elon Musk is unbreakable but Tesla needs to find a successor in case his health fails, an activist investor in the carmaker says
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