Tesla investors are concerned that billionaire Elon Musk was spreading himself too thin by moving forward with the purchase agreement for Twitter. However, Twitter stock has soared as a result of the billionaire’s action.
Musk sold shares of Tesla earlier this year for almost USD 15 billion in order to pay for the purchase of Twitter. He had previously vowed to call it quits on the takeover due to the sheer volume of phoney accounts.
Musk did not provide any information regarding a potential second round of stock sales, but Wedbush analyst Dan Ives cautioned that the Tesla CEO’s desire to complete the transaction might negatively affect the stock price of the company.
‘We see lingering impacts from Musk stock sales as a drag dissipating but the big worry is Musk juggling too many balls at the same time,’ Ives said as quoted by Reuters.
Musk is the CEO of SpaceX, a company that builds spacecraft, and he also co-founded The Boring Company and the neurotechnology firm Neuralink.
On Wednesday, Tesla plunged close to 6%, while Twitter shares, which finished at their highest level since April, were down to roughly 2%.
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