Tesla stock swings down on prospect of Elon Musk stepping back as Twitter CEO

Tesla Inc. shares jumped then retreated in anticipation of Elon Musk potentially stepping back from Twitter Inc., the social media company that has distracted him from running the electric-car maker for months.

Tesla’s stock rose as much as 5 percent at the start of premarket trading Monday, but had fallen 1 percent by 11 a.m. EST. The shares have plunged 58 percent since Musk disclosed in early April that he’d taken a stake in Twitter, underperforming the 15 percent drop in the S&P 500 Index.

Musk, 51, tweeted Sunday that he would abide by the results of a poll asking whether he should step down as head of Twitter.

As of 6:30 a.m. EST, about 57.5 percent of votes voted yes with more than 17.5 million votes cast. The Tesla CEO has previously taken his cues from Twitter users on decisions ranging from whether he should trim his stake in the car company, to whether he should reinstate former president Donald Trump’s account.

Whereas Musk’s next steps after those polls were relatively straightforward, it’s less clear what he’ll do if Twitter users vote for him to step down. Musk has tweeted that it will be difficult to find another CEO and written that the company “has been in the fast lane to bankruptcy since May.”

“No one wants the job who can actually keep Twitter alive,” he said in another post. “There is no successor.”

Meanwhile, over the weekend, Musk reinstated the Twitter accounts of several journalists that were suspended for a day over a controversy on publishing public data about the billionaire's plane.

The reinstatements came after the unprecedented suspensions evoked stinging criticism from government officials, advocacy groups and journalism organizations from several parts of the globe on Friday, with some saying the microblogging platform was jeopardizing press freedom.

A Twitter poll that the Tesla chief conducted later also showed that a majority of the respondents wanted the accounts restored immediately.

"The people have spoken. Accounts who doxxed my location will have their suspension lifted now," Musk said in a tweet on Saturday.

Twitter did not immediately respond to a Reuters request for comment. A Reuters check showed the suspended accounts, which included journalists from the New York Times, CNN and the Washington Post, have been reinstated.

Officials from France, Germany, Britain and the European Union earlier condemned the suspensions.

The episode, which one well known security researcher labeled the "Thursday Night Massacre", is being regarded by critics as fresh evidence of Musk, who considers himself a "free speech absolutist," eliminating speech and users he personally dislikes.

Roland Lescure, the French minister of industry, tweeted on Friday that, following Musk's suspension of journalists, he would suspend his own activity on Twitter.

Melissa Fleming, head of communications for the United Nations, tweeted she was "deeply disturbed" by the suspensions and that "media freedom is not a toy."

The German Foreign Office warned Twitter that the ministry had a problem with moves that jeopardized press freedom.

Where is Elon's jet?

The suspensions stemmed from a disagreement over a Twitter account called ElonJet, which tracked Musk's private plane using publicly available information.

On Wednesday, Twitter suspended the account and others that tracked private jets, despite Musk's previous tweet saying he would not suspend ElonJet in the name of free speech.

Shortly after, Twitter changed its privacy policy to prohibit the sharing of "live location information."

Then on Thursday evening, several journalists, including from the New York Times, CNN and the Washington Post, were suspended from Twitter with no notice.

In an email to Reuters overnight, Twitter's head of trust and safety, Ella Irwin, said the team manually reviewed "any and all accounts" that violated the new privacy policy by posting direct links to the ElonJet account.

"I understand that the focus seems to be mainly on journalist accounts, but we applied the policy equally to journalists and non-journalist accounts today," Irwin said in the email.

The Society for Advancing Business Editing and Writing said in a statement on Friday that Twitter's actions "violate the spirit of the First Amendment and the principle that social media platforms will allow the unfiltered distribution of information that is already in the public square."

Musk accused the journalists of posting his real-time location, which is “basically assassination coordinates” for his family.

The billionaire appeared briefly in a Twitter Spaces audio chat hosted by journalists, which quickly turned into a contentious discussion about whether the suspended reporters had actually exposed Musk's real-time location in violation of the policy.

"If you dox, you get suspended. End of story," Musk said repeatedly in response to questions. "Dox" is a term for publishing private information about someone, usually with malicious intent.

The Washington Post's Drew Harwell, one of the journalists who had been suspended but was nonetheless able to join the audio chat, pushed back against the notion that he had exposed Musk or his family's exact location by posting a link to ElonJet.

Soon after, BuzzFeed reporter Katie Notopoulos, who hosted the Spaces chat, tweeted that the audio session was cut off abruptly and the recording was not available.

In a tweet explaining what happened, Musk said "We're fixing a Legacy bug. Should be working tomorrow."

Bloomberg and Reuters contributed to this report.