Digital and Innovations

Amid lawsuit by Tesla investor, Elon Musk set to step down as Twitter CEO

Elon Musk, the Chief Executive Officer of electric carmaker – Tesla – plans to resign his CEO position in the social media company, Twitter, amid a lawsuit from the automaker’s investor.

 

Musk acquired Twitter for $44 billion in late October after a series of back and forth between him and the former board of the social networking firm.

 

After acquiring the company, the board of directors was relieved of its duties, and Musk sacked the management, including the former CEO, Parag Agrawal.

 

He has since taken over as ‘Chief Twit’, dispensing orders on Twitter’s content direction and also sacking workers at the company to reduce expenses on the firm’s workforce, which he said causes Twitter to lose $4 million per day.

 

Tesla Investors are worried that Musk is spending too much time on the operation of Twitter and offering less oversight on Tesla affairs.

 

The billionaire had sold about $20 billion worth of the automaker’s shares to fund his acquisition of the social media company.

 

Musk and Tesla board had been sued in 2018 by Tesla shareholder, Richard Tornetta, who is worried that the billionaire has secured an agreement that does not require him to work full time at Tesla, and also got a $56 billion pay package.

 

During a hearing relating to the lawsuit, Musk told Delaware court on Wednesday that he intends to appoint a CEO to replace him at Twitter, stating: “I expect to reduce my time at Twitter.”

 

He had explained to the court: “There’s an initial burst of activity needed post-acquisition to reorganize the company.”

 

Musk was told that his pay deal with Tesla should mandate him to work for a specific time at the electric carmaker, but the billionaire said: “I pretty much work all the time.”

 

He added: “I don’t know what a punch clock would achieve.”

 

 

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