- Some high-profile investors agreed that Tesla’s shares fell as Musk was distracted on Twitter.
- Musk is trying to get new investment for the platform and just sold $3.6 billion worth of Tesla stock.
- Investor Ross Gerber said, “What we’re getting is a vote of no confidence against Elon.
Tesla investors are desperate for Elon Musk to get rid of his Twitter responsibilities and focus on the electric car company again.
With Tesla’s shares down 65% over the course of the year, some Musk fans are fed up with their hero’s expensive and chaotic social media influx.
Ross Gerber, head of Wealth and Investment Management at Tesla shareholder Gerber Kawasaki, said in a Twitter Spaces speech on Tuesday that Musk’s relationship with Twitter was the sole cause of the auto company’s market woes.
“We all know why Tesla shares fell, and it has nothing to do with the company,” Gerber said. “The company is doing very well. It has the best environment it could ask for. It’s about to get a lot of incentives from the government. Factories are booming. New products are being launched. The only problem is that the CEO is discussing Hunter Biden’s problems on Twitter every day.”
Over the past two weeks, Musk has been working closely with newsletter writers Bari Weiss and Matt Taibbi to publish what Musk calls the “Twitter Files”, consisting primarily of company email correspondence between Twitter executives and employees about content moderation decisions. . It also began banning journalists and critics from the platform, while continuing to cut costs significantly and layoffs.
Another issue is Musk’s continued sale of Tesla shares, likely to cover the costs associated with his new Twitter ownership, which he formally purchased at the end of October for $44 billion. In April, Musk made a public promise that he would not sell his stake in Tesla. It sold another $3.6 billion last week.
“The sale of Elon absolutely killed the stock because of the selling method,” Gary Black, managing partner at The Future Fund investment firm, which has a stake in Tesla, said at Tuesday’s Spaces event. “I’ve called it reckless before. Maybe that’s too harsh a word.”
“This is surprising,” Gerber added. Both Gerber and Black have suggested that Musk sold his Tesla shares to invest in Twitter, a company that Black stated “has never made any money and will probably never.”
Just before Spaces starts on Tuesday afternoon, Gerber wrote on Twitter That Tesla’s stock reflects “not the CEO” of the company. Musk first mocked, then they argued Tech stocks, including Tesla, have plummeted due to rising interest rates on personal savings accounts, causing people to choose guaranteed returns at a bank over riskier stock investment.
Black dismissed this claim, saying that the 10-year US Treasury bond yield, which has fallen sharply since late October, is better than Tesla’s. This should make a long-term stock investment like Tesla more interesting to investors. Instead, the stock continues to slide, dropping another 8% on Tuesday.
Overall, the impact on Tesla’s stock and the result of a poll that said Musk should step down as Twitter’s CEO on Saturday were clear-cut, according to Gerber.
“What we got is a vote of no confidence against Elon,” Gerber said.
Gerber is also an investor on Twitter, taking part in an equity funding round earlier this year before Musk took over. Earlier last week, he said he had received an email out to everyone who had previously invested in Musk’s Twitter takeover – saying the company was holding “another round of fundraising” and investors should get in touch if interested. Although Twitter did not share any information about its current financial situation, he added.
“This is very strange,” said Black. “Finances is very different now.” Gerber said that despite responding to the fundraising email, he has not received any follow-up messages about the new round of funding from anyone on Musk’s team or Twitter.
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