Not only may Elon Musk have messed up Twitter; he may have also killed his most profitable company as well. As per CNBC, stocks in Tesla — Musk’s electric car company and the crown jewel in his massive fortune — suffered yet another steep fall, plummeting 11% and bringing it to the low-low price of $109.10. That gives the company’s stock its worst month, its worst quarter, and its worst year.
Not much left before Elon gets margin called & the stock goes into a death spiral $TSLA. Investors are scrambling to get out while they still can!
pic.twitter.com/PEisd3dnWu
— William LeGate (@williamlegate) December 27, 2022
What caused the latest fall? The news come a day after The Wall Street Journal reported Tesla’s Shanghai factory will continue a weeklong hiatus due to a fresh onslaught of COVID cases. That news hasn’t been good for investors, who are reportedly already furious with Musk for devoting so much time to the social media giant he paid too much to acquire in November. That Tesla cars have been malfunctioning, with dire results, hasn’t helped either.
As such, Tesla stock has fallen a whopping 69% in this year alone, and 73% since its record high last November.
Musk has clearly been preoccupied with Twitter, which is bleeding cash. Its new owner has been selling big chunks of Tesla stock, totaling $3.6 billion — or a fraction of what he paid to buy the social media platform. On December 22, he vowed to not sell any more stock for 18 to 24 months.
Since buying Twitter, Musk has turned into its frequent, if not permanent, “main character,” now regularly dragged for his controversial actions. Was it wise for a thin-skinned narcissist to buy a site primarily used to make fun of the powerful or foolish (or both)? Was it a keen business move to alienate the very people who would buy his electric cars (environmental-minded progressives) while brown-nosing with people (the far right) who would never even be caught dead inside one? Maybe Glass Onion was right about Musk-like “disruptors.”
In any case, Musk treated the news of his vanishing Tesla stock as he usually does with bad news: He tweeted through it.
“Don’t be the clown on the clown car!”
Too late haha
— Elon Musk (@elonmusk) December 27, 2022
(Via CNBC)