After disclosing a passive stake in Twitter, Inc. (NASDAQ:TWTR) on Monday, Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk showed that he means business. The social media platform said in a filing on Tuesday that Musk will join the company's board with a term expiring 2024.
The Tesla Analyst: Wedbush analyst Daniel Ives has an Outperform rating and $1,400 price target for Tesla shares.
The Tesla Thesis: Accommodating Musk is a friendly move by the company's board, as it embraces the Tesla CEO with open arms, analyst Ives said in a note. The passive stake is clearly just the start of Musk's involvement in Twitter, he added.
Drafting Musk into Twitter's board will lead to a host of "strategic initiatives," the analyst said. These, according to the analyst, could range from near-term to long-term possibilities as Twitter is still struggling in a social media arms race.
Related Link: Why Elon Musk Building His Twitter Stake Signals 'More Aggressive' Involvement Is Likely
"The Street will clearly like this news as Musk's positive influence will be embraced by investors as seen by the stock's reaction yesterday," Ives said.
Musk becoming more involved at Twitter further expands his massive ecosystem and reach, the analyst said. The analyst expects him to balance his key roles at SpaceX and Tesla. This, therefore, should not be a cause of major worry for Tesla investors at this pivotal time, he added.
Tesla, Twitter Price Action: At last check, Tesla shares were down 3.64% at $1,103.98, while Twitter continued its upward march and was seen trading 2.60% higher at $51.27.
Related Link: Why Tesla Analysts Are Shrugging Off Q1 Deliveries Miss, Remain Bullish On The EV Stock
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