Elon Musk is currently spending too much time with Twitter and that is not good news for Tesla investors. The more involved he is with Twitter, the more Tesla sinks in the market. The latest news is Twitter may even file for bankruptcy if it is unable to generate revenue to support it.
The saying " It never rains but pours" apply to the slew of bad news that affected Tesla recently. Firstly, Tesla is recalling more than 40,000 2017 to 2021 Model S and Model X vehicles that could experience a loss of power steering assist.
Tesla share price has slid to its lowest level in almost 2 years after Elon Musk disclosed he sold another USD 3.95 billion worth of shares. On 9 November, Tesla ended down 7.2% at 177.59, the lowest level since November 2020.
Investors are concerned that this might not be the end of Elon Musk's stock sales of Tesla. The latest sale brings the total amount of Tesla stock sold by him to USD 36 billion.
On November 14, Elon Musk is back in Court to face charges from a disgruntled shareholder Richard Tornetta about Elon Musk USD 56 million pay package. The lawsuit claims that the pay package is unjustly paid to Elon Musk without demanding he focus entirely on Tesla. The fact that Elon Musk is now the CEO of Twitter, Space X, the Boring Company, Open AI and Neuralink only lend credence to Tornetta 's claims that Elon Musk is a "part time executive" at Tesla.
Twitter costs Elon Musk too much money at USD 44 billion. Elon Musk is in debt of USD 13 Billion which is secured against his stake in Tesla as part of the leveraged buyout. If Twitter sinks, Tesla will also sink because Elon Musk will need to sell more Tesla shares to pay his huge debt.
I am sure Elon Musk would like to turn back the clock and wish that he never purchased Twitter. It is a case of throwing the baby out with the bathwater, Tesla being the baby the Twitter the bathwater.
I believe that Tesla is in a very vulnerable position currently and its share price may hit new lows. However if Elon Musk can get over the big hurdles he is facing currently, he may yet save Tesla from further sell offs.
I still believe in the future of Tesla and perhaps Elon Musk can appoint a new CEO who can solely focus on Tesla to regain investors confidence once again. Tesla is more than just an EV company. There are exciting plans ahead for Tesla with products like Semi truck on December 1, the highly anticipated Cybertruck in 2023, robotaxis in 2024 and the human robot Optimus in 2023.
If Tesla drops further to new all time lows, it is time to jump on the bandwagon to buy more Tesla shares. I believe that Tesla growth story is not over by a long shot and I want to own a small part of it.
@Tiger_chat @MillionaireTiger @CaptainTiger @TigerStars
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