Tesla collapses on Wall Street, investors are fed up with Elon Musk’s upheavals


Photo credit © Tesla

(Boursier.com) — You’re here an end down more than 8% yesterday on Wall Street, taking its losses since the start of the year to more than 60%. Enough to bring the valuation of the Texan group well below the 500 billion dollar mark for the first time since November 2020. The chaotic management of the billionaire’s Twitter since its takeover for 44 billion dollars continues to weigh heavily on the Tesla title while that the one who is also a patron of SpaceX financed the deal by selling billions of dollars of shares in the electric car manufacturer.

Leadership in question at Tesla

Investors fear that the management of the social network has become a distraction for the boss of Tesla, a group in which he is personally involved in production and engineering. An opinion far from being shared by the entrepreneur of South African origin. Yesterday, Elon Musk openly mocked Ross Gerber, CEO of Gerber Kawasaki Wealth Management, after the longtime Tesla investor tweeted about a perceived lack of leadership at the electric vehicle maker and said that it was time for a “reshuffle”.

As ‘Bloomberg’ recalls, R.Gerber had already tweeted on December 16 that he had informed Tesla’s board of directors that he wanted to run for a seat. Other investors, including Leo KoGuan – one of Tesla’s largest individual shareholders – are also called for governance changes.

Elon Musk ready to step down as CEO of Twitter

Not a day goes by that Elon Musk doesn’t get noticed. After asking Twitter users if he should step down as chief executive and then refraining from commenting on the vote result (57.5% of respondents, or more than 10 million people, voted in favor of his departure), the billionaire ended up indicating on the social network that he would resign as soon as he found “someone stupid enough to take the job”. The sulphurous leader even specified that he remained in charge of Twitter’s software and server teams.

Elon Musk, who initially said he “complies with the result”, initially refused to acknowledge the poll result, responding only to messages placed in doubt about the outcome of the poll. The second richest man on the planet in a row suggested that only paying Twitter subscribers could vote in future polls, rather than opening them up to all users of the social network. Gary Black, a Tesla investor, said, “If Elon backtracks and doesn’t accept the results of his own Twitter poll, the Elon brand and the Tesla brand could be negatively affected.”

Analysts add a layer

On Tuesday, Tesla was also penalized by several analyst notes. Evercore ISI and Mizuho notably cut their price targets on the record, with both courtiers citing concerns over demand. The Japanese broker reduced its target from $330 to $285 due to potential weak sales: macro headwinds and a weaker consumer could lead to lower demand for the more expensive electric vehicles.

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