Elon Musk, Tesla CEO Elon Musk is selling Tesla stock again and investors are increasingly worried that this could be related to a problematic Twitter takeover. As a result, the car maker share price plunged to its lowest levels since November 2020 on Wednesday.
Elon Musk gets rid of Tesla Inc. shares
Tesla Inc shares fell more than 7% to $ 177.59 on Wednesday. reaching the lowest level in 2 years at the closing. As a result, the company’s share price is at its lowest since November 2020. The current sell-off of Tesla’s shares is probably a consequence of the information that president Elon Musk has sold another block of shares in the manufacturer of electric vehicles, worth $ 3.95 billion. Importantly, Musk announced some time ago that he would not sell more Tesla shares.
Tesla Inc. share price Source: tradingview.com Musk shed 19.5 million shares between Friday and Tuesday, according to documents released by the US Securities and Exchange Commission (SEC) on Tuesday. Information about the sale of shares by the eccentric billionaire also heated the legitimacy of the purchase of Twitter for 44 billion dollars, which was finalized a few weeks ago. Many analysts and investors are concerned that Elon Musk may be too distracted by the simultaneous conduct of, inter alia, SpaceX, Tesla and now also the social media giant. It is also a mystery whether Musk will redirect human resources to a social media firm after controversial major layoffs have been made that may have turned out to be excessive. The billionaire himself warned that Twitter could do “a lot of stupid things” in the coming months. Musk may have needed the money to really finalize his deal with Twitter, but restructuring the company and straightening the ship will prove to be more expensive than he likely expected. OANDA analyst Edward Moya said. – I think investors are afraid that this may not be the end of selling his shares. Meanwhile, almost a year ago, on November 4, 2021, Tesla Inc. hit all-time highs, ending the session at $ 409.97. Since then, Tesla shares have fallen more than 56%. Four days after breaking the all-time highs, Musk began a stock sale which is still ongoing.
The latest package that the company’s CEO got rid of raises the total amount raised from the sale of shares since November last year to $ 36 billion. “Musk is losing more credibility with investors and his loyalists once again (…),” said Wedbush Securities analyst Dan Ives. Musk needs to end the impact of Twitter clutter on Tesla and focus back on his golden child: a Tesla that needs his time more than ever, considering adverse macroeconomic factors, production and supply problems in China and competition in the electric car market which is gaining strength in all corners of the world. – added expert Wedbush Securities.
Also check: Musk’s first successes? Daily Twitter users on the rise At the moment, Musk hasn’t had too many successful decisions to take over Twitter. The billionaire admitted that Twitter has suffered a huge drop in revenue since taking control of it, blaming civil rights activists pushing advertisers for it. Some large companies, such as the American General Motors, withdrew their ads from Twitter for fear that Musk could loosen the rules of moderating the content on the site.
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