• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

Elon Musk can’t run Tesla effectively if he buys Twitter: analysts

April 15, 2022
in Technology
0
Elon Musk can’t run Tesla effectively if he buys Twitter: analysts
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter


Wall Street analysts are doubtful that Tesla CEO Elon Musk will be able to devote enough energy to running his electric car-making company as well as SpaceX if he takes over Twitter.

Shares of Tesla fell 3.6% in trading on Thursday — just hours after it was revealed that Musk mounted a $41 billion all-cash hostile takeover bid for the social media company.

Musk said he wants to buy all of Twitter’s remaining shares and take the firm private in order to restore its “free speech” mission.

Private equity giant Thoma Bravo is working on a possible bid for Twitter, a source close to the situation told The Post.

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,” Gene Munster, managing partner at venture capital firm Loup Ventures, which owns shares in Tesla, told Reuters.

“This is a one- to three-months headwind to Tesla’s stock.”

Shares of Tesla, the world’s most valuable automaker, fell more than 9% since Musk disclosed his more than 9% stake in Twitter last Monday.

Shares of Musk's electric car maker Tesla fell by more than 3.5% on Thursday after news of his Twitter bid became public.
Shares of Musk’s electric car maker Tesla fell by more than 3.5% on Thursday after news of his Twitter bid became public.
AFP via Getty Images

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.

“Musk is Tesla, and investors don’t want to see Tesla lose that leadership edge,” Roth Capital Partners analyst Craig Irwin said.

And investors base their fears on Musk’s own words prior to this foray.

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.

Another worry is how Musk will finance a potential deal for Twitter, which would include stock sales and massive loans, analysts said.

Tesla recently opened new factories in Austin, Texas, and Berlin.
Tesla recently opened new factories in Austin, Texas, and Berlin.
EPA

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.

Tesla executives may pledge their company stock as collateral for loans, but the maximum loan does not exceed 25% of the total value of the pledged stock, according to company policy.

This means that he could borrow $42.5 billion by pledging all of his shares worth $170 billion.

But he already pledged over half of his Tesla shares as collateral to secure certain personal indebtedness, according to a Tesla filing last year.

Musk wants to buy all of Tesla's outstanding shares for $41 billion.
Musk wants to buy all of Tesla’s outstanding shares for $41 billion.
REUTERS

Musk said Thursday he has the assets to buy Twitter, but has not provided details.

The fortunes of the world’s richest person consists largely of stock at Tesla, and Space X.

He sold over $16 billion in Tesla shares late last year, $11 billion of which he said would be paid in taxes.

“He is potentially setting himself up for a huge liability down the road,” said Howard Fischer, a partner at law firm Moses & Singer and former senior trial counsel at the Securities and Exchange Commission.

With Post wires

Tags: analystsbuyseffectivelyElonMuskrunTeslaTwitter
Previous Post

Texas Representative Michael McCaul on Putin's mindset: "The worst days are coming"

Next Post

Oswestry: Man drove van on Powys road while using mobile phone

Related Posts

Team develops mechanism to control actuation, cooling and energy conversion for soft robotics
Technology

Team develops mechanism to control actuation, cooling and energy conversion for soft robotics

A transducer combining liquid crystal...

Read more
Newly developed algorithms raise the bar for autonomous underwater imaging
Technology

Newly developed algorithms raise the bar for autonomous underwater imaging

Credit: Pixabay/CC0 Public Domain Tests...

Read more
Researchers teleport quantum information across rudimentary quantum network
Technology

Researchers teleport quantum information across rudimentary quantum network

Alice, the receiver of the...

Read more
A firmware-based approach to thwarting ransomware attacks
Technology

New approach allows for faster ransomware detection

Credit: Pixabay/CC0 Public Domain Researchers...

Read more
Study explores how older adults react while interacting with humanoid robots
Technology

Study explores how older adults react while interacting with humanoid robots

Examples of tasks performed during...

Read more
Load More
Next Post
Oswestry: Man drove van on Powys road while using mobile phone

Oswestry: Man drove van on Powys road while using mobile phone

  • Trending
  • Comments
  • Latest
Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Six times actors really romped in sex scenes that make 365 DNI look tame

Six times actors really romped in sex scenes that make 365 DNI look tame

The Block’s Darren Jolly shows off his muscular frame as he completes push-up challenge

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Kendall Jenner Slices Cucumber After Fail – Hollywood Life

Kendall Jenner Slices Cucumber After Fail – Hollywood Life

Home Price Growth Eased Up In Q4 But Not Enough To Help Buyers: NAR

Prices Are Softening. But Don’t Expect That To Last, Economist Says

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Fallen Order sequel Star Wars Jedi: Survivor officially announced for 2023

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Gervonta Davis vs Rolando Romero: Weigh-in Results, Odds & Live Stream

Kendall Jenner Slices Cucumber After Fail – Hollywood Life

Kendall Jenner Slices Cucumber After Fail – Hollywood Life

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....