Billionaire entrepreneur Elon Musk seems to have his hands full with his takeover of Twitter. With managing the social media platform proving to be quite a task, voices of concern have started emerging about Musk’s other companies, Tesla in particular. Financial analysts appear to increasingly agree that Twitter has made Musk take his attention off his other ventures.
“I think there’s a real feeling that Elon Musk has taken his eye off the Tesla ball really since the purchase of Twitter. It seems he’s dedicated an awful lot of his time to trying to turn around Twitter and make it the company he wants it to be. And as a result, there is a feeling that he’s neglecting Tesla, which, of course, has been affected by headwinds of its own, not least the Chinese slowdown…,” said Hargreaves Lansdown, Senior Investment and Markets Analyst, Susannah Streeter.
He was quoted by Reuters.
When Musk was in the middle of the protracted process to acquire Twitter, investors in his other companies had expressed concerns that the billionaire was spreading himself too thin by taking over the platform. The days after his takeover have been rocky for the company as his sacked nearly half of its staff. This threatened to destabilise the function of Twitter.
It was revealed on Wednesday (December 14) that Musk sold USD 3.6 billion worth of stocks in Tesla.
The sale is the second big chunk of stock he has cashed out since his $44 billion purchase of Twitter in October, despite his repeated assurance in April that he was done selling Tesla shares.
It was not clear whether the sale of shares was connected with Twitter. But it was sure to annoy investors who are upset by a perception he is diverting his focus and resources to Twitter ahead of Tesla.
Musk’s 13.4% stake in Tesla is down from about 17% a year ago, according to Refinitiv data.
Tesla stock, which rose about 1% in early trading on Thursday (December 15), has halved this year, underperforming both automakers and the broader tech-heavy Nasdaq, which is down about 30% this year.
(With inputs from agencies)
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