Elon Musk caused Tesla to lose 11% in a tweet
Within a year, Tesla shares lost 73% of their value. Elon Musk’s kind response to former Russian President Dmitry Medvedev was the last straw for thousands of investors who could no longer tolerate the billionaire’s slips.
Can we lose tens of billions in one tweet? Elon Musk proved it.
While Tesla’s economic health has the financial world worried about whether Elon Musk is the right man to lead the electric car star, an interested party saw fit to respond to tweets from Dmitry Medvedev, the current deputy chairman of Russia’s Security Council. Putin’s right-hand man, telling him he found his tweets “epic”.
Four hours later, Elon Musk clarified that he was actually being ironic and that he did not believe the predictions of the Russian statesman (predicting the return of the United Kingdom to the EU, the collapse of Europe, war) at all. Between France and the “4th Reich”, as well as the civil war in the United States, just like that).
This new deviation from Elon Musk caused Tesla shares to lose 11.41% of their value on December 28th.
Elon Musk is destroying everything
Visiting Elon Musk’s Twitter is a funny experience. As Tesla shares tumble (down 72.72% from $399.93 to $109.10 in a year), the billionaire seems interested only in ideological battles. A few of his company’s tweets about the state of the economy, and they usually bash Democrats or the media. Instead, Elon Musk prefers to condemn the Covid-19 vaccine advocates, the “wokers”, the LGBT supporters, the media that would be a machine to create lies, the Joe Biden government, the left and the people who don’t appreciate it. his humor.
Of course, keep in mind that the drop in Tesla stock is not 100% due to the billionaire’s tweets. The global economic context is not favorable to anyone and would have played with Tesla anyway. At the same time, a number of analysts were concerned about the risk of seeing fewer orders and factory shutdowns. Either way, Elon Musk isn’t really helping his business.
For Elon Musk, everything is a culture war. The billionaire, who less than a year ago was one of the most respected people on the planet, no longer allows nuance and divides the world into two categories: those who agree with him and… leftists. How not to see a big mess? Elon Musk, although controversial for several years, caused less controversy before he started taking over Twitter.
It is not the first time that he has been in contact with Russia. Elon Musk has been accused of talking to Putin since the war broke out, and has spoken openly with Medvedev before that.
Could Elon Musk be fired from Tesla?
Elon Musk has another problem: his surroundings. As revealed by his private text messages during his lawsuit against Twitter, Elon Musk seems to only be surrounded by people who tweet like him, constantly promoting him and openly insulting his critics. Is it necessarily bad? While most people share values with those they love, Elon Musk’s responses show that the people he interacts with are more interested than encouraged, or even completely alienated. The bubble in which the businessman encloses himself shrinks and isolates him without even realizing it. The billionaire is playing a very dangerous game, we hope he gets out without too much damage.
On the Tesla side, what could be the results this fall? As several investors have pointed out, did Elon Musk sell tens of billions of dollars worth of Tesla stock during the peak, as if anticipating this revaluation? Some are starting to want him gone, while others are still defending him. The problem is that Tesla is very volatile and Elon Musk can lose control if he is not careful. The fate of Steve Jobs, who was fired from Apple, which he created, went from impossible to possible.
