Tesla Shares fell sharply after Elon Musk’s successful acquisition of Twitter, wiping out nearly $114 billion of the company’s market cap. While the decline is massive, it’s not hard to see why this is happening. After Twitter received Musk’s “best and final” offer to sell the company for $54.20, there was an almost immediate increase in his ability to run a social media platform that had never been targeted in the first place. Wall Street favourite. But more than Twitter’s bleak financial forecasts and the cessation of its advertising business, the big concern is whether Musk can effectively fulfill Tesla’s duties while adding another company to its portfolio.
In addition to Tesla, Musk currently heads SpaceX, the world’s largest private space company. Neuralink aims to create a new era of human-machine neural interface under Musk, while The Boring Company has revived its Hyperloop dreams. SpaceX is also entering a new commercial route after completing agreements with JSX and Hawaii Airlines to commercially provide low-latency Wi-Fi services over Starlink satellites in low Earth orbit. Needless to say, Muskie’s ride as a leader has been a busy one, and adding Twitter, with all its social media woes, is just an open invitation to corporate outreach. Press coverage of Musk’s takeover of Twitter has also been unforgiving.
And it seems Tesla investors are feeling the pain of an endless wave of all this uncertainty and speculation. According to the report The Washington PostTesla shares fell more than 12%, dropping the company’s market cap by more than $100 billion. That’s double what Musk paid for Twitter. Musk’s vast personal fortune is absolutely tied to Tesla stock, which is why his fortune has fallen by more than $25 billion since the crash. Since Musk’s financing plan to buy Twitter involved raising about $21 billion in shares against his own Tesla stake, it may be necessary to cut even more Tesla shares in a deal with banks to offset the loss in the depreciation of the company. to make up for the Tesla stock.
A nightmare of worries for Tesla investors
But the bigger question is whether Tesla investors should be concerned. Usually the answer is yes. Tesla has seen impressive growth in recent quarters, hitting record production and taking sales to new heights. However, Musk’s quick takeover of Twitter shook everything up. Experts suggest Musk may bite more than he can chew on Twitter, especially when it comes to free speech at all costs and unleashing a storm of content moderation. †Tesla shareholders couldn’t be happier that Musk has to divert attention even further from winning electric car races.– said Oanda analyst Edward Motta, citing: Forbes† There is also historical precedent to consider. In the past, Muskie’s decisions have dumped his shares in Tesla, pushing Wall Street’s assets to the brink, the most recent example being the sale of his stock to pay taxes.
But the concern of Tesla investors doesn’t stop there and, in fact, goes beyond a plate full of musk. Musk has already made bold promises to Twitter, both before and after the $44 billion acquisition. In addition to developing key new features, the Tesla boss wants to make the algorithm open source, fight the bot threat, and most importantly, let freedom of speech flourish. The latter is on a slippery slope as it also opens doors to toxic and misleading information to get more fun on the platform. It also means rolling back Twitter’s years of content moderation progress, albeit small. Musk can’t do it alone, but his recent attacks on Twitter executives have created an atmosphere of uncertainty among Twitter employees.
according to an a well-informed person In the report, the speech of the employees is a great opportunity. Above all, this is the pressure to make money on Twitter to pay off loans and not sink. The final piece of the puzzle is Musk’s controversial history with Twitter and how his Tesla Sennacheribs compare to the SEC’s hostile intervention in the past. For better or for worse, Tesla assets are tied to Twitter now more than ever, and that would certainly worry investors. Of course, Musk can always pull out of the deal and pay a $1 billion fine, focusing on: TeslaBut it will be useless, especially since you made big claims on Twitter to fix it.
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
