Tesla is down 35% since Elon Musk first said he would buy Twitter

ever since Tesla CEO Elon Musk announced his bid to acquire the social network twitter, shares of his electric car maker fell more than 35%, falling just 3.6% in Friday’s trading amid a market rally following a volatile week. By comparison, the Nasdaq Composite is down about 18% over the same timeframe.

Musk first announced on April 25, 2022 that it had agreed to acquire Twitter. Tesla’s stock closed at $332.67 on the day and today he closed at $207.47, limiting his Twitter ownership for his first week.

Musk spoke at the 29th Annual Barron Investing Conference on Friday, where hedge fund investor Ron Barron (now a shareholder in Tesla, SpaceX, and Twitter, and general public about Musk’s business) bull) asked the billionaire CEO about juggling new ventures. responsibility.

In addition to running a reusable rocket manufacturing and satellite internet company (SpaceX), a multinational electric vehicle and sustainable energy company (Tesla), as well as a brain chip company (Neuralink) and a tunnel business (The Boring Company), Musk now: Calls himself “Chief Twit”. More formally, he’s Twitter’s CEO and sole director after a $44 billion deal.

Musk told Baron: “My workload has increased from 78 hours a week to maybe 120 hours a week. SpaceX or Tesla.”

He told his Twitter followers that his position as the social network’s sole director and CEO is temporary, but has not clarified who might succeed him as Twitter’s CEO. not

Because Musk owns the social network, some automakers like GM and Audi have paused their ad spending there. However, it’s not clear how that will affect Tesla in the long run.

Tesla has long relied on Twitter and Elon Musk’s large following to disseminate information to its shareholders, with Musk using it to promote the entire company, its products, and his own self-image. It advertises free of charge. Frequently urging fans to join Twitter to attack.

To control Twitter, Musk More than 50 Tesla employees approved, mostly Autopilot and other software engineers, as well as several trusted advisors and supporters from his other businesses. He has yet to explain how Tesla’s employee schedules will be split, how their responsibilities to Twitter and Tesla will be paid or interrelated.

At the investor meeting, Musk also reiterated that Tesla intends to develop an electric vehicle that is cheaper than the entry-level Model 3 electric sedan. He also restated his goal of allowing him to produce 40,000 cars per day.

Musk also said that given the number of batteries required for this level of production, and all the metals and other materials required to build them, Tesla would go directly to mining rather than relying entirely on mining. Sounds like you need to get involved. External Suppliers.

As some news outlets have previously reported, Barron asked him if Tesla was in talks with or considering investing in Glencore. “I have never considered investing in Glencore,” Musk said, stressing that “we are talking about Tesla doing their own thing” when it comes to mining lithium.

Since Musk announced the deal in April, Tesla’s share price has tumbled far more than any other automaker. general motors When ford Electric car makers are down about 2% and 11% respectively. Rivian It fell over 5%.