Elon Musk's offer to buy Twitter sparked concerns among Tesla investors and analysts that the electric carmaker could suffer as the chief executive becomes distracted by his takeover play and the possible sales of Tesla shares to fund the deal.
The idea of Musk working to close that deal, possibly by selling even more of his Tesla stake, and then overseeing yet another company has Tesla observers worried."Elon is distracted. He's got a lot of things going on. He's involved in a lot of different endeavors," said Gene Munster, managing partner at venture capital firm Loup Ventures, which owns shares in Tesla. "This is a one to three months headwind to Tesla's stock.
While Musk has talked about potential changes he would like to see Twitter make, Tesla faces its own challenges - the need to boost production at new assembly plants in Berlin and Texas, analysts said. Meanwhile, Tesla's Shanghai factory - its largest - has been idled by the COVID-19 crackdown in China.
And investors have Musk's own words prior to this foray on which they base their fears. Last year, he said he worked seven days a week - "crazy hours" - splitting time between Tesla and SpaceX. He also leads brain-chip startup Neuralink and tunneling venture the Boring Company. Wells Fargo analyst Colin Langan said Musk, who holds over a 9% stake in Twitter, would need $39 billion to complete the deal and the sale of more Tesla shares could pressure the stock further.
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