Elon Musk’s flagship Tesla Inc. stock fell to a new two-year low of $150.04 early Friday, sparking renewed concerns that Twitter’s recent acquisition and chaotic management are eroding the foundation of his financial empire.
The stock plunge came in the morning after Musk booted several prominent journalists from the platform, and after Musk spent the better part of the week offloading more than 22 million shares of Tesla stock, whose value is more than 3.5 billion dollars. Musk has now made nearly $40 billion in sales of the electric car company in the past year.
Musk’s controversial acquisition of Twitter, a deal that was announced in April and closed in October, coincides with a truly turbulent year for technology markets. But Tesla underperformed the NASDAQ Technology Sector Index (NDXT) by more than 20 points. As of Friday, the company is down 57.12 percent year-to-date compared to NDXT’s 35.53 percent lower. The company’s value has fallen from $1 trillion to $500 billion at the start of the year, and Musk has lost the title of “world’s richest man” in the process.
Musk was suspended after Friday’s dive The New York Times Correspondent Ryan Mack The Washington PostDrew Harwell, Mashable’s Matt Binder, CNN reporter Donnie O’Sullivan, The Intercept’s Micah Lee, independent reporter Aaron Roper, political commentator Keith Olbermann, and freelance journalist Tony Webster from Twitter. Many have criticized Musk’s content moderation decisions. Earlier this week, Musk forcefully rewrote Twitter’s content policies to make any posts including real-time location data a punishable offense. The platform-wide policy change appears to have been made repeatedly to justify the platform by removing the accounts of Jack Sweeney, who tracked the movements of airplanes and private jets through publicly available aviation data. . Musk accused journalists of covering Sweeney’s ban on posting “my real-time location, basically the coordinates of the assassination, in (apparent) direct violation of Twitter’s terms of service.” Rolling Stone There are no known instances of journalists posting coordinates directly to Musk’s location.
During the week, investors called on Musk to find someone else to run Twitter’s day-to-day operations, and to shift their focus back to Tesla. On Wednesday, Liu Kuoguan, the EV company’s third-largest investor, tweeted that Musk had “left Tesla” and that the company had “no CEO.” Following the platform’s journalistic purge, investor Joe Serencione The tweet rang For Musk to leave Twitter, accusing him of “killing the company with his antics.”
The company itself has admitted that they “rely heavily on the services of Elon Musk, Tesla Technoking and our CEO” to manage the company. If investors are paying attention, have great financial institutions. Goldman Sachs cut its price targets for Tesla earlier this week, citing the increasingly “polarizing” nature of Tesla’s branding due to Musk’s involvement on Twitter, and suggested the company return its ” Main features of sustainability and technology”.
Musk also faces the threat of sanctions abroad. European Commission Vice President Vera Jourova on Friday accused the company of violating the EU’s digital services law and media freedom law in the “arbitrary suspension of journalists.”
“There are lines,” she said Tweeted. “And bans, soon.”