Elon Musk condemns Tesla shareholders that Twitter will do well in the future

It’s turning into a nightmare for Tesla shareholders. Elon Musk said during a meeting with Twitter staff that is selling shares of the electric vehicle firm to “save” the social network even the possibility of bankruptcy. The South African businessman also warned workers in an email that the platform’s losses could be measured in the billions.

Musk has become one of the biggest sellers on the US stock market between 2021 and 2022 at the expense of Tesla shares. Only in so far this year it has shed a position close to 26,000 million dollarsto which we must add the sale of 16,000 million dollars for all of 2021. A selling trend that generates concern about the investors of the automobile firm, even among some experts who, until recently, were staunch defenders of its evolution to future.

The technology analyst Webbush Securities and longtime Tesla bullDan Ivescomplained in a recent report that Musk threw “a curveball (a meaning that is said for poisoned pitches in baseball) to investors” and called the technological genius the protagonist of the story ‘Peter and the Wolf’ for stating on numerous occasions, most recently in August, that he had finished selling.

“It is a kick in the teeth for those who bought shares last month following his grand vision that Tesla would one day be worth more than Manzana and the Saudi energy giant aramco together”, points out the Wedbush analyst. Also, as if that wasn’t enough, he also promised a sizeable share buyback next year during his third-quarter earnings call.

Ives has been critical of the Twitter deal, calling it one of the most overpaid deals in tech sector history. The confirmation of his fears that Musk was not done secretly dumping his shares showed that Tesla shareholders had an “endless Twitter albatross.” “Twitter’s circus sideshow has been an absolute debacle from every angle since Musk bought the platform,” Ives wrote. “When is this going to end?” he laments.

The unexpected penalty

Musk’s most confident supporters believed it was safe to assume he had raised all the money he needed to buy Twitter. “Turns out Elon wasn’t done selling his Tesla stock.wrote Gene Munster, managing partner of Loup Funds. “The Tesla’s bullish sentiment argued that Twitter It would not be a bottomless pit, but in the end it has not been like that”, he commented.

Tesla investor and Future Fund Active ETF co-founder Gary Black estimated losses could top $3 billion annually on Twitter: “It’s still a burning dump.” The company, of course, is a separate business in a different industry. Its financial success and troubles don’t directly affect Tesla, but they do affect the electric-vehicle maker in many indirect ways.

To get started, Musk’s actions on Twitter have the potential to negatively affect Tesla’s brand image. The problems of the social network seem to be having an impact on the shares of the electric vehicle manufacturer, as they have fallen 15% since the South African took over the company. Meanwhile, Tesla shareholders watch Twitter layoffs and Musk announces several measures, such as $8 monthly verification fees, to help turn the platform around.

Although Musk is the richest person in the world, an executive spending billions to support a company is amazing and unprecedented, “says Black. “It must feel like a bad dream for Tesla shareholders,” he elaborates critically.

In early 2022, Tesla was riding high after increasing 2022 delivery volumes by more than 80%. The stock is up more than 50% in 2021 after rising more than 740% in 2019. Now the value is down 46% on the stock market so far this year, worse than the average decline for car and auto-parts stocks in the Russell 3000 Index, as Tesla investors wonder what will happen to Twitter.

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Elon Musk condemns Tesla shareholders that Twitter will do well in the future