Musk Fulfills Promise to Step Down Following Poll Results
In December, Musk pledged to honor the outcome of a poll asking whether he should resign as Twitter CEO. Although he didn't provide a specific timeline, he said he would leave once he found someone "foolish enough to take the job." In addition, he mentioned that he would continue to oversee software and server teams. This decision is consistent with Musk's history of abiding by poll outcomes for major choices.
Musk's Chaotic Tenure as Twitter CEO Since October
Since taking the helm in October, Musk's time as CEO has been tumultuous. He notably fired the executive team and dissolved the board of directors, resulting in the departure of many rank-and-file employees. Under Musk's leadership, Twitter's content moderation policies shifted to limit reach instead of imposing bans. While some have praised this approach, it has also driven away advertisers who are concerned about their ads appearing alongside hate speech and misinformation. Twitter has attempted to increase subscription-based revenue but has yet to succeed.
Uncertainty Remains Following Leadership Change
The extent of Musk's control after the leadership change remains unclear. Although he will no longer be CEO, he will still significantly influence Twitter's technology and board decisions. As Musk played a part in selecting his successor, the new CEO may hesitate to change the current strategy. Twitter may maintain the status quo established during Musk's tenure, at least for some time.
Tesla Investors May Find Relief in Musk's Reduced Role
Tesla investors concerned about Musk's divided focus between Twitter and Tesla may find reassurance in his reduced role at Twitter. With more time available to concentrate on his electric vehicle company, Musk can better address the growing competition in the industry.