The case Twitter is throwing Tesla investors into turmoil. Wall Street analysts are worried but it was Musk himself who promised – explaining in detail why – Tesla will benefit from his mishap on Twitter. It all started with the publication of SEC documents (the Securities and Exchange Commission, the US federal body responsible for overseeing the stock exchange) last Wednesday which revealed that Elon Musk sold 3.5 billion in Tesla shares.
Wall Street
Elon Musk sells another $3.5 billion in Tesla stock. The title sinks in New York
by Archangel Rociola
In fact, analysts speculate that the proceeds from this sale will help cover Twitter’s deficits, with the specific accusation that Musk is “using Tesla as his ATM to finance Twitter”.
The analysis
Musk won’t relinquish leadership of Twitter easily. But the problem with him now is Tesla
by Archangel Rociola
Controversy aside, certainly the fact that Elon Musk has bought Twitter and is dedicating himself so much to his social network scares investors. Also because – for the third time – after declaring (last April) that he had no intention of selling Tesla shares, then Musk himself sold another 22 million shares, for a value of about 3.5 billion dollars. That brings the total amount of Tesla stock Musk sold this year to $23 billion.
Mobility
Covid stops Tesla: stop car production in Shanghai
But now Musk explains that – in the long run – Tesla will benefit from its “coexistence” with Twitter. Shared apps, visibility, common strategies, management synergies are the key points. But they are all future projects. For now, of course, there’s only Tesla’s declining electric vehicle sales, the halt of production of the Model E and Y in China and the continued use of Tesla stock to finance the remodeling of Twitter. It’s easy to understand why shareholders are scared.
