Tesla Actions plummeted after Elon Musk’s acquisition of Twitter, eliminating nearly US$114 billion of the company’s market value. Embora is still great, it’s not hard to see why this is happening. Ever since Twitter accepted Musk’s “best and final” offer to sell the company for US$54.20 a share, an almost instantaneous wave of speculation has erupted over his ability to operate a social media platform that was never known. has been to Wall Street. But more than Twitter’s dire financial forecasts and the state of crisis of its ad companies, a major problem is that Musk is still able to effectively fill his positions at Tesla and add another company to his portfolio.
To lead Tesla, Musk currently heads SpaceX, the world’s largest private space transportation company. Neuralink aims to usher in a new era of neural human-machine interface under Musk’s leadership, while The Boring Company rekindles its Hyperloop dreams. SpaceX is also entering a new business path after signing agreements with JSX and Hawaiian Airlines to provide low-latency commercial in-flight Wi-Fi services through its Starlink satellites on Earth’s low-cost carrier. Suspended will say Musk’s travel schedule as a leader is busy, and adding Twitter — with all its social media woes to reboot — is just an open invitation to business transportation. On the other hand, the press coverage of Musk’s takeover of Twitter has not been exactly indulgent.
And it looks like Tesla investors will feel the pinch from all this uncertainty and intermittent waves of speculation. In accordance with a story by The Washington Post, Tesla’s stock price rose 12%, eliminating more than US$100 billion in the company’s market cap. That’s better than what Musk paid for Twitter. Musk’s vast personal wealth is largely tied to Tesla’s stock, so his proposed liquid wealth was reduced to more than $25 billion after the accident. Since Musk’s financial plan to take over Twitter required him to raise nearly $21 billion in shares against his partnership with Tesla, he may need to sell more Tesla stock in concert with the banks to offset the stock’s depreciation.
But the main question is whether Tesla investors should be concerned. Usually the answer is yes. Tesla has seen impressive growth in recent quarters, breaking production records and selling its recipes to new patamaras. Meanwhile, Musk’s quick Twitter buy made things worse. Experts suggest Musk could be deadlier than it can be controlled with Twitter, especially when it comes to increasing free speech and the storm of content moderation it’s driving at all costs. †Tesla shareholders can’t be happy that Musk has to divert even more attention from encountering electric vehiclessays Oanda analyst Edward Mota, Forbes† There is also historical precedent worth considering here. In the past, Musk’s decisions to divest its shares from Tesla have confused the company on Wall Street, as the most recent example is sending its shares to pay taxes.
But Tesla’s investor concerns don’t stop there, and it’s highly likely that Musk will stay here. Musk has already made thousands of promises to Twitter, before and after the $44 billion purchase. Instead of developing new and meaningful resources, the Tesla boss wants to open up the code algorithm, fight the threat of bots and above all, let freedom of speech flourish. The latter is a ladeira escorregadia because it also opens the doors so that poisonous and deceptive information can get more zeal on the platform. It also means wasting years of content moderation created for Twitter, for less than that already. Musk can’t do it alone, but his recent attacks on Twitter councilors have created an atmosphere of insecurity among Twitter employees.
conformed to internal historically, an exodus of workers is a great possibility. Above all, there is pressure to monetize Twitter to pay our businesses and not lose. The latest piece from the quebra head is Musk’s controversial story with Twitter and how he’s connected to his Tesla business with all that hostile SEC intervention. For better or for worse, Tesla’s fortunes are now more connected to Twitter than ever before, and that should definitely bother investors. Of course, Musk can always waive the deal and walk away after paying a $1 billion fine to focus on Teslabut this will be out of character especially after making major re-events to concerts or Twitter.
Source: The Washington Post, Forbes, Intern