Should Elon Musk step down as Tesla CEO? This top investor thinks so

Elon Musk has been monumental in taking Tesla where it has reached out now but his Twitter activities have been a major problem. Musk's 'irresponsible' and 'controversial' tweets had forced him to step down as Tesla Chairman and now, a top investor in the electric car maker believes that Musk must also step down as CEO as his irresponsible tweets can do the company more harm than good. James Anderson from the UK-based investment management firm Ballie Gifford, which holds a 7.5 per cent stake in Tesla, told a German magazine that he "does not think Elon needs to be CEO". 

"His micro-management also includes the desire to speak to the stock market and the world in ways we do not necessarily consider helpful," Anderson, who knows Musk personally, told Germany's Manager magazine on Thursday. His comments were aimed at Musk's fondness for controversial midnight tweets.

The Tesla CEO had reached a settlement with the US Securities and Exchange Commission (SEC) in April, agreeing to have more specific oversight on his tweets about the company. According to the settlement, all tweets from Musk about Tesla's financial health, sales or delivery numbers would have to be pre-approved by a company lawyer. The SEC sued Musk last year as well for making fraudulent statements after he tweeted in August 2018 that he had "funding secured" to take Tesla private at $420 per share.

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However, both the parties later on agreed that he should step  down as Chairman and have the company's lawyers pre-approve written communications, including tweets with material information about the company. Earlier in February, the SEC again held Musk in contempt of court for allegedly violating a previous public disclosure settlement.

Meanwhile, in a major development, Tesla has agreed to buy batteries from South Korea's LG Chem Ltd for electric vehicles manufactured in China. The batteries made by the South Korean chemical company will be initially used in Model 3 cars that are manufactured in the plant near Shanghai.