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Tesla investors are becoming increasingly irritated as Elon Musk devotes more time and attention to his Twitter makeover, even as the electric vehicle company’s stock prices plummet.
As a result of months of legal drama, political consequences, and social media chaos precipitated by Musk’s takeover of Twitter, Tesla’s stock price has decreased by about 60% this year. The pressure on shares has been exacerbated by the billionaire’s sale of at least $36 billion worth of Tesla shares to fund his Twitter deal.
Trevor Goodman told Bloomberg that he just sold $30,000 worth of Tesla shares after tiring of Musk’s Twitter theatrics.
Goodman told the newspaper, “It’s almost as though he’s abandoned us in favor of his new goal.”
“When he announced he was going to buy Twitter, I was completely against it because it would distract him from Tesla and everything he’s trying to achieve there.”
This year, Tesla’s stock has declined by over 60%.
Earl Banning, another investor, expects to keep his thousands of shares of Tesla stock, although acknowledging that Musk has “lost a lot” of followers due to his Twitter antics.
“It was completely needless,” Banning said. “You have a fantastic automobile company; please stop.”
Musk’s actions at Twitter have been subject to intense scrutiny, including a wave of layoffs that sparked lawsuits, his insistence on a “hardcore” work culture that includes the installation of beds in the company’s offices, and major pushback from advertisers over loosened content moderation standards.
Musk serves as the CEO of both Twitter and Tesla.
Musk’s engagement with Twitter has also raised investor concerns that he is overextended. Musk is significantly involved in the operations of private space company SpaceX, as well as brain chip startup Neuralink and the tunneling company Boring Company, in addition to his positions as CEO of Twitter and Tesla.
The focus on Musk has increased the pressure on Tesla, which is also dealing with investor fears of a worldwide recession, persisting supply chain issues, and a decline in demand in its most important market, China.
This year, Tesla faces a variety of worldwide problems.
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Tesla bull Dan Ives of Wedbush has often referred to Musk’s Twitter takeover as a “overhang” on the stock of the electric vehicle manufacturer.
“In the final analysis, Musk is Tesla and Tesla is Musk.
“Tesla’s stock will reflect any negative perceptions of Musk by Wall Street,” Ives wrote in a November 23 note to clients.
Bloomberg said that despite the controversy, Tesla remains a favorite among retail investors. According to data compiled by investment research firm Vander Research, the company’s stock is the second most purchased by individual investors in 2018.
Tesla shares account for the majority of Elon Musk’s fortune.
In recent months, Musk’s personal fortune has plunged as the majority of his wealth, Tesla shares, have lost value. Forbes’ real-time billionaires list indicates that as of Thursday, the Twitter CEO had lost his position as the world’s richest person to French luxury goods entrepreneur Bernard Arnault.
According to the publication, Musk’s net worth has decreased by more than $100 billion in the past year alone. He is presently believed to be worth $185,5 billion.
»Tesla investors are fed up with Elon Musk’s Twitter antics: ‘It’s as though he’s abandoned us.’«