Tesla sank yesterday on Wall Street wiping out over $ 125 billion in value and all of that in the aftermath of Elon Musk’s purchase of Twitter. While taking control of Twitter may be good for Elon Musk, it was not the case with Tesla’s stock.
The day after Twitter announced it accepted Musk’s $ 44 billion takeover offer, Tesla shares sank 12.2%, wiping out more than $ 125 billion from the electric vehicle maker’s market value. . Pushups that come as Wall Street worries about how the agreement could have an impact on the Palo Alto carmaker and its stock market performance. When Musk announced he had secured the money to finance the transaction, he said he would hedge $ 21 billion himself, with the banks helping to finance the other half. What remains unclear is how he will get that money – if he sells some of the Tesla stock he owns, he will borrow more money, bring in other investors, or all three.
There is also growing concern that owning Twitter would lead it into free speech conflict with the government in China, a key market for Tesla where the auto maker also has significant manufacturing.
Other than that, there is a risk that Musk may be distracted from his latest acquisition. Musk is the CEO of Tesla e Space-X and is involved in other commercial ventures such as Neuralink, which develops brain implant technology, as well as The Boring Company, which builds tunnels.
Yet as analysts claim, even if Musk successfully buys Twitter and refuses to become CEO, he is very likely to want to influence social media’s day-to-day operations. Furthermore, running three companies at the same time is not unusual, as it is unprecedented to run three of the largest companies in the world at the same time all together.
Musk and the previous not well-deserving one
Previously to try his hand at the enterprise was Carlos Ghosn, the former CEO of Nissan and Renault, and former president of AvtoVaz and Mitsubishi. Ghosn actually held leading roles in all four companies for a time, and was managing three of them in 2018 when he was arrested in Japan on charges of financial misconduct. In 2014, Ghosn pointed out in an interview that the key to his ability to manage so many companies at once was to avoid multitasking. At that time, his program was organized more than a year in advance. “I don’t mix the different responsibilities, because I just want to make sure that the different teams in charge feel responsible and that there is no confusion between the different companies”, Ghosn said at the time.
Musk may feel differently. In 2018, the South African entrepreneur said he effectively divides his time between his various businesses by hiring a strong team and assigning responsibilities appropriately to each of them. In this way, he said, “almost all of my time is devoted to engineering and design”.
A timeshare leadership though may be familiar to Twitter. Co-founder Jack Dorsey served as CEO for both Twitter and his other start-up, payments company Square, from October 2015 to November 2021. Dorsey had his own time management strategy, setting the same hours every week. for leadership and meetings. All that remains is to wait for Musk’s next move and considering the subject, there will be no shortage of surprises.