Tesla stock plummets as investors worry about Twitter
After Wall Street lowered its price estimates for the stock of the manufacturer of electric vehicles, Tesla’s shares slumped 8.12% on Tuesday. Tesla stock plummets as investors worry about Twitter .
Analysts worry that CEO Elon Musk is preoccupy with his aggressive acquisition and micromanagement of Twitter and that China sales would suffer if COVID-19 is allow to proliferate after the Chinese government changed its position on severe limitations.
Analysts claim that investors are worry that Musk would sell additional Tesla stock to finance Twitter and that his antics on the social networking site are damaging the reputation of the electric vehicle manufacturer. One of the several stock dumps the CEO has carried out this year was the sale of $3.5 billion worth of shares by Musk last week.
Tesla’s board of directors
“The value of not having a CEO is now reflected in Tesla stock price. Excellent work, Tesla BOD. Time for a change, wrote portfolio manager Ross Gerber on Twitter for Gerber Kawasaki.
Also Read: Will Elon Musk follow through on his threat and lose Twitter?
It’s not yet obvious if public opinion of Musk’s participation on Twitter has had an impact on Tesla EV sales; after all, Teslas are still largely regarded as good cars by all measures of battery range, performance, technology, and safety. The results for the fourth quarter of 2022 won’t be available until January.
However, according to Gordon Johnson, CEO and founder of GLJ Research and Tesla bear, the concerns over Chinese sales are legitimate. Tuesday at a Twitter Spaces event, Johnson mentioned that Tesla’s biggest and most lucrative market is China.
The China Passenger Car Association (CPCA) tracks monthly sales, but geographical breakdowns of Tesla cars sold every quarter are hard to obtain. That amounts to 343,830 units, or slightly more than half of all the devices sold globally in Q3.
Tesla’s global sales:
China accounts for a bigger share of Tesla’s global sales since its rate of EV adoption is higher than that of the United States and Europe. Investors worry that such sales will decline in the upcoming months as COVID-19 threatens to wreak havoc on the nation. having an effect on the Tesla EV brand? Gary Black, managing partner of the Future Fund, made this statement on Tuesday at a Twitter Spaces session. Tesla is the fund’s largest holding, according to Black, who owns around $50 million in the company’s stock.
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