Tesla CEO and Twitter owner Elon Musk recently explained to analysts and shareholders why he refuses to leave the social media company despite recent calls by Tesla shareholders to step down and refocus his efforts on the electric car company.
The Street reports that Tesla CEO Elon Musk has recently faced criticism from shareholders for using Twitter too frequently. His presence on the platform has been reduced at the request of shareholders so that he can concentrate on the automaker. Musk, however, said he won’t cut back on his Twitter activity and that it’s actually good for Tesla during a recent earnings call.
During the January 25 conference call with analysts, Musk said, “I’ll check my Twitter now. Okay, so I currently have 127 million followers, and that number is increasing quickly. That implies that I’m, uh, fairly well-liked.”
He continued by saying that Tesla benefits from his use of Twitter “In my opinion, Twitter is a very effective tool for increasing demand for Tesla. And I strongly urge businesses, whether they are automotive or not, to use Twitter more and to use their accounts in engaging, educational, and entertaining ways. Doing so will help increase sales, much like it has with Tesla.”
Musk has been known to express his political views in addition to promoting Tesla. He urged voters to support Republican candidates in November in order to restore what he called a “balance of power” in Washington, which at the time favored the Democrats. Musk has also supported the publication of the Twitter Files, which appeared to show collusion between Twitter’s former executives and Joe Biden’s presidential campaign during the 2020 election.
While Musk’s Twitter activity has historically benefited Tesla, some industry insiders think it may now be doing more harm than good. “In the past year, we have seen Tesla’s brand lose equity across every brand value, from foundational safety to refinement,” said Alexander Edwards, president of the San Diego consulting firm Strategic Vision. He added, “These problems are magnified in that battery electric vehicles are more often purchased by self-identified Democrats who have generally opposed Musk’s actions with Twitter. It will become more difficult to sell Tesla vehicles as the narrative of Twitter makes the vehicles seem less fun and alienates the primary buyer.”
Tesla shares lost two-thirds of their market value in the past year, with shareholders calling on Musk to stop engaging in politics and concentrate on the automaker even more worried — especially when the economy is at risk of entering a recession. Musk has said he won’t stop tweeting about politics despite these requests.
Read more at the Street here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan