Shares of Tesla suddenly increased by 2% after Elon Musk announced that he was stepping down as CEO of Twitter, Business Insider reported.
The new CEO of the social media giant, who was handpicked by Musk, will start their duties in 6 weeks. The owner of Twitter will take over the duties of executive chairman and chief technical officer. Musk will also oversee product releases, software, and system operations.
Earlier, a group of Tesla shareholder activists urged the company's board of directors to put pressure on Elon Musk, who was accused of neglecting the company. The shareholders argued that he was not spending enough time managing Tesla.
According to activist shareholders, the corporate boards should interfere if the CEO is too focused on other enterprises. They stated that allowing Musk to run several companies at once prevented Tesla from facing strategic issues facing the company, including increased competition from other EV companies.
In this situation, shares of Tesla surged. On Thursday, May 11, the stock closed at $172.08 per share and continued to rise in after-market trading.
