Tesla stock downgraded after Elon Musk announces tentative Twitter departure

Elon Musk is no stranger to controversy, but the scrutiny around the billionaire entrepreneur hit an all time high in the wake of an eventful Monday which saw a Tesla stock downgrade, a warning from a lawmaker and a peculiar Twitter poll.

Sunday evening, the new Twitter CEO launched a poll asking users to vote on whether he should remain or step down from his position at the social media platform, promising to abide by the outcome. Roughly 17.5 million accounts participated, with 57% responding yes. Shortly thereafter, Musk posted a cryptic message saying “…be careful what you wish, as you might get it.” He has yet to clarify if he still intends to vacate the role or when.

Only hours after the poll, investment firm Oppenheimer downgraded Tesla stock from outperform to perform. Colin Rush, analyst for the bank, explained to the company’s clients that the negative press surrounding Musk’s Twitter buyout had “severely damaged” investor confidence in the automaker’s future. Since the CEO assumed his position, the EV brand’s stock has fallen 30%.

Adding to the chaos, Senator Elizabeth Warren penned a letter to Tesla chairman Robyn Denholm over the weekend, warning him about Musk’s behavior. Earlier in the year, CNBC reported that the CEO had seemingly outsourced some of Twitter’s tasks to Tesla executives. Leaders of multiple companies involved with Musk were brought in for advice, something which Warren noted could be in violation of labor laws. The politician also argued, given the poor performance of Tesla stock, the entrepreneur had acted against the best interests of investors, another choice with potential legal consequences.

Public sentiment has shifted over the course of 2022 in regards to Musk, with each new controversy confusing and concerning his former supporters. While his erratic behavior allows him to retain an air of enigmatic charisma in the eyes of some, others seem less impressed by the antics and eager for things to go back to normal. Interestingly, as the public reacted to Musk’s tweet, Tesla stock saw a slight jump yesterday morning, despite Oppenheimer’s downgrade.

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