On April 27, according to foreign media analysis, Elon Musk’s planned acquisition of personal social media platform Twitter for $44 billion is bound to befurther distract himhas also raised deep concerns about the executive talent pool of electric car maker Tesla.
Musk announced the acquisition of Twitter on Monday. But for someone who lived and slept on a factory floor in the early days of building the Model 3 electric car and raced against the clock for crazy work, it’s hard to have the energy to manage several big companies himself.
Ross Gerber, Tesla investor and CEO of wealth management firm Gerber Kawasaki, said: “Despite Tesla’s trillion-dollar assets,But it still feels like a startup. “It’s as big as the biggest company in the world, if not bigger, but it doesn’t have the management infrastructure that other companies have. “
In addition, Tesla is working to ramp up production at new Gigafactories in Texas and Berlin amid lingering supply chain issues and rising raw material costs. Musk said in January that,Tesla has too much businesswill not launch new models such as the Cyber electric pickup this year.
Tesla is already finding ways to overcome its own problems, but Musk’s extra focus on Twitter has investors worried.
“I’m worried it will distract him,” said a fund manager with a large Tesla position. “He’s dealing with all kinds of issues with the supply chain, the delays in factory production and the expansion of the energy storage business, which is simply not appropriate.”
Tuesday local timeTesla shares fell more than 10%the day before Musk finalized a deal to acquire Twitter.
“The concern is not only that Musk will sell Tesla stock to close the deal, but that Musk will be distracted,” said Dan Ives, an analyst at Wedbush Securities.
Tesla shares have fallen about 18% since April 4, when Musk first disclosed that he owns more than 9% of Twitter.
A Tesla insider, who asked not to be named, said:Investor concerns are ‘overdone’, Musk still pouring energy into company.
Musk also leads space company SpaceX, brain-computer interface startup Neuralink and tunnel-digging company Boring.
Tesla has experienced executive personnel changes. Company co-founder JB Straubel left in 2019, and president Jerome Guillen also left the company last year.
Founded in 2003, Tesla is already the world’s most valuable automaker, but its leadership team has only two executives aside from Musk on the company’s website. By comparison, General Motors and Volkswagen have 17 and 11 executives, respectively.
In addition to Musk, current Tesla executives include Chief Financial Officer Zachary Kirkhorn and Senior Vice President of Drivetrain Development Andrew Baglino. Both men will appear on Tesla’s quarterly earnings call.
Robert Pavlik, a senior portfolio manager at Dakota Wealth in Fairfield, Conn., owns a certain number of Tesla shares. He thinks Musk might put someone else in charge of Twitter operations.
“It seemed the most logical thing to do,” he said. “Tesla and SpaceX have kept him busy.”
Gerber said,Maybe Musk needs a strong Twitter number twolike Gwynne Shotwell, the president of SpaceX.
Ian Beavis, chief strategy officer at automotive consultancy AMCI, worries that a string of controversies over Musk’s acquisition of Twitter could even damage the Tesla brand.
According to reports, Musk is currently worth as much as $268 billion. Some investors remain concerned about Musk’s plans to finance the Twitter acquisition. Twitter said Musk has secured debt and margin loan financing totaling about $25.5 billion, with $21 billion in equity commitments. It is unclear whether Musk will sell Tesla shares to fund the deal.
Musk owns 172.6 million Tesla shares, about half of which are for mortgages, according to the Tesla filing. If Musk takes out more stock as collateral for a $12.5 billion margin loan, he may have about 30 million unpledged shares left.
.
[related_posts_by_tax taxonomies=”post_tag”]
The post The acquisition of Twitter and the management of Tesla. Investors worry about whether Musk can take care of it. Insiders responded that “the worry is too much” appeared first on Gamingsym.