Amid Elon Musk’s Twitter Obsession, His Status At Tesla Is Called Into Question

Why was Elon Musk late for the meeting?

His sudden departure shows how worried the new CEO and owner of Twitter are now. Elon Musk has spent much time running the social media company over the past few weeks. He has been on multiple audio chats and tweeted photos of himself working from the company’s headquarters in San Francisco. He bought the company for $44 billion at the end of October.

Now, some Tesla investors are asking Musk to give up control of one of his companies because the stock price of the electric car company is going down, which makes people worry the billionaire is spreading too thin. It closed on Wednesday at $156.80 per share, giving it a value of less than $500 billion. This is a significant drop from the spring when Musk showed interest in Twitter and Tesla was worth more than $1 trillion.

>> Elon Musk Is Going To Do Well On Twitter

Musk sold about $3.5 billion worth of Tesla

According to a financial filing made Wednesday night, Musk sold about $3.5 billion worth of Tesla stock in the past few days, which added to the losses. Files show that Musk also sold more than $3.9 billion of Tesla shares at the beginning of November.

In a tweet on Wednesday, he said that Tesla needed to buy back shares “to take advantage of the low share price Elon has created.” Investors were worried that the company’s value could take another hit on Thursday.

Musk tweeted Tuesday, “I’ll ensure Tesla shareholders gain from Twitter.”

Tesla investors have had mixed feelings about Musk’s plan to buy Twitter since he first talked about it this spring. The billionaire has a lot of money in Tesla shares and would have to use those shares to buy the social media company. Even though Tesla’s stock dropped, many investors remained cautiously optimistic or at least neutral about Musk’s deal.

Investors say they believe in Elon Musk because he works hard and gets the most out of his employees. Musk had said that he slept on the floor of the Tesla factory when the company was having trouble making enough cars.

In his short time as the company’s owner and CEO, Musk has gotten rid of most of Twitter’s employees, gotten rid of an outside trust and safety council that was supposed to help keep the site safe for users, and brought back banned accounts, including that of former president Donald Trump.

Since he took over in October, people have asked Musk how long Twitter will keep making him work so hard. He has said that in the future, he will spend less time on Twitter and find someone else to run it.

Tesla has said that Musk is busy with his other businesses

The company has said, “We depend heavily on Elon Musk, the Technoking of Tesla and our Chief Executive Officer.” “Mr. Musk spends much time with Tesla and is very involved in our management, but he doesn’t give Tesla all of his time and attention.”

Gerber said in an interview, “We’re in the best time in the company’s history, and Twitter is annihilating it.” “I think the stock price would go up a lot if they just said, ‘Elon is no longer the CEO of Tesla.'” I don’t want that anymore. I want him to come back to Austin.'”

Gary Black, the managing partner of Future Fund LLC, an investor in Tesla, asked the Tesla board to put pressure on Musk to find a leader for Twitter so that he can put all of his attention back on the electric car company.

Tesla EVs Real Voice

“His polarising political ideas harm how customers regard Tesla EVs,” he tweeted. “People don’t want their cars to stir up controversy.” They want to feel proud to be driving them, not ashamed.” He said that he hoped Musk would be able to “focus on Tesla as CEO.”

Tesla is dealing with a drop in demand in China and rising costs for the parts it needs to make electric cars. Dan Ives, an analyst at Wedbush Securities, said that investors are worried about Musk’s split attention. They were also worried that he might keep selling Tesla stock to pay for Twitter.

He said, “Elon Musk and Tesla are inextricably intertwined; the two are nearly a brand.” Indeed, Musk’s Twitter antics didn’t bode well for Tesla, but they certainly didn’t help him out personally.

This week, Goldman Sachs lowered Tesla’s price target.

Goldman Sachs reduced its price aim for Tesla this week, showing that the firm expects the stock to decline. The company, however, “remains well positioned for long-term growth,” according to Goldman Sachs. Analysts wrote that the number of deliveries would probably be less than expected. They brought up news stories that Musk’s actions have made the Tesla brand more controversial.

Goldman Sachs analysts wrote, “We think Tesla’s brand has a lot of value because the company is a leader in clean energy and advanced technology.” “It will be important for Tesla to meet or exceed long-term investor expectations that the public’s attention on Tesla shift back to these core aspects of sustainability and technology.”

The futures of Twitter and Tesla are now tied together, not just because Musk is in charge of both companies but also because of how much money he has.

Musk’s fans even seem to have doubts about him.

Galileo Russell, a YouTuber who focuses on Tesla and has given Musk a lot of praise, said that Musk was wrong to get involved in politics.

He tweeted, “I think Elon Musk is making a mistake by getting too political.”

Musk said, “It has to be done for the future of civilization, which is the only thing that matters.” Then, someone else asked Musk where that Elon Musk was on his list of most important things.

Fans tweeted, “Can we make Tesla number one and woke mind virus number two?” “I hope it will be worth it.”

Russell is an investor in Tesla. Despite his tweet about Musk’s move into politics, Russell said he stands by Musk.

He told The Washington Post, “I still own all of my Tesla shares and think Elon is the best CEO on the planet and the best person to run Tesla.” “Shareholders with short-term goals are a loud minority who will be wiped out. This is a healthy and normal process as financial markets try to make sense of things worldwide.


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