Tesla Inc. (TSLA) shares hit a fresh two-year low in volatile trading as the boss’s promise not to sell his shares in the electric car company for at least two years did not reassure investors.
Elon Musk has offloaded a large amount of shares, worth $40 billion, in the world’s most valuable electronic car market since last year; $15 billion of that came after he made similar promises not to sell in the month of April.
The distraction caused by the acquisition of Twitter and a slowdown in China’s economy affected Tesla’s performance. For the company, it marked their worst year since going public in 2010. Now it has shown signs of coming back, as the stock was up 2% earlier.
Later, Musk said that he wouldn’t sell stock until, I don’t know, probably two years from now. This controversial move has rattled advisors who contribute 90% of Twitter’s revenue.
Dennis Dick, head trader and market structure analyst at Triple D Trading, talks about Musk’s statement that, if another CEO of a Fortune 500 company made a statement like that, the market would be confident in that statement.
Musk has run multiple companies for these years. The aura around Musk fans is that he is a visionary and genius. This is one of the reasons that many people are interested in Tesla. They thought it was the future of automobiles, but his purchase of Twitter last year affected this image of him. Elon Musk has become a Twitter troll for many for his controversial actions.
Musk sells billions of dollars’ worth of Tesla shares to fund his Twitter takeover, eventually hurting the stock. The amount of time he is spending on Twitter is cutting into the time Musk has for Tesla.
Meny Tesla investors are agitating for a new CEO for Twitter and for Musk to step back from the social media company. It is very clear that these problems with Twitter are distracting him from Tesla.
Edward Moya, a senior market analyst at OANDA, said that Musk looked rattled, vowing not to sell more stocks and floating the idea of share buybacks. He also said that short sellers are fairly in control, and there is hesitation by retailers to buy this dip.
Things are changing for Elon Musk Tesla, the earnings report reasserted that long-term forecast but said it would likely only produce 1.8 vehicles in 2023, which is 31 percent above the 2022 production.
It is also predicted that its deliveries will increase by 37 percent, so clearly Tesla is coming back. Tesla’s output has been constrained by the economy-wide supply chain and the shortage of raw materials, but that output could reach two million in 2023 if things are going well.
Tesla plans to launch production of its Cybertruck this year at its massive Texas plant. Musk aims to increase the volume of the Cybertruck in 2024. Hopefully the coming years will witness the growth of Tesla’s business.
