Elon Musk’s Twitter Bid Is Pissing Off Big Tesla Investors
There’s a lot of stuff going on with Twitter amidst the Elon Musk takeover. Comments regarding the acquisition ha ruled social media company’s executives and staff. Turns out it has also frustrated some of the loyal Tesla investors.
Tesla has lost quite a bit of its value in recent months. The drama caused by Elon’s 44 billion deal with Twitter has resulted in Tesla losing around 30 percent of its value since April 1. The tech-heavy Nasdaq Composite fell around 15% during that time.
Why are investors concerned about Elon Musk’s Twitter deal?
Fans of the tesla chief executive are raising concerns that Elon might risk stretching himself too thin. He also runs a rocket company SpaceX and is quite invested in it. Now with Twitter, some Tesla investors are concerned that he could lose focus.
“I wish he would walk away,” said Gary Black, who is the managing partner of the Future Fund LLC, which owns roughly $50 million worth of Tesla. Mr. Black, a Tesla investor, said he views Twitter as a distraction that is likely to demand more of Mr. Musk’s time than the billionaire expects.
According to a report from The Wall Street Journal, followers tweeted at him saying “Elon, Twitter is an unnecessary distraction. Just focus on Tesla.” Musk stated publicly that he is spending less than 5% of his total time on the whole Twitter acquisition. He also said that Tesla is his prime focus and is on his mind 24/7.
Mr. Musk’s Twitter takeover attempt has been processed in waves by Tesla investors. From April 1—the last trading day before Mr. Musk announced that he had purchased a big investment in Twitter—until April 25, when Twitter approved his proposal to take over the firm, the company’s price dropped roughly 8%. During that time, the Nasdaq Composite dropped about 9%.
After this, Tesla’s tumbling went on. Tesla’s stock price saw a continuous fall, till Musk injected fresh doubt into the Twitter deal. He made a statement that the planned acquisition was “temporarily on hold” citing concerns about fake accounts. Although he added at the time that he remained committed to the acquisition.
Earl Banning, a Tesla investor, described himself as he is hesitant about Mr. Musk’s pursuit of Twitter.
“He’s already a lightning rod, and it makes him more of a lightning rod,” said Dr. Banning, a Tesla enthusiast whom Mr. Musk interacts with regularly on Twitter. It hasn’t spurred Dr. Banning to sell Tesla stock, though.
“Elon’s going to continue being Elon,” Dr. Banning said. “I feel that as a long-term shareholder, it will come back to where it should be because they’re executing. They are selling cars, and they’re profitable.”
All these concerns from Tesla’s supporters but Elon seems evident on his decision. However, the takeover still seems to be in a will he won’t he phase. Guess we’ll just have to find out how the deal turns out.
