Tesla stock has plummeted since Elon Musk took over Twitter. Here's why.

[Scott]

Tesla stock has plummeted since CEO Elon Musk took over Twitter, falling more than 45% in about over two months.

In all, the company's stock has dropped more than 65% since January, when Musk began investing in Twitter. By comparison, the tech-heavy Nasdaq has fallen about half as far over that period.

https://abcnews.go.com/Business/tesla-stock-plummeted-elon-musk-twitter/story?id=95756733

[Credo]

His cars maybe self-driving, but his companies are not.  

[bendejo]

49 minutes ago, Credo said:

His cars maybe self-driving, but his companies are not.  

Certain current events might make a person wonder just how much this guy's judgement can be relied upon.  So when he talks about the safety of his self-driving vehicles . . .

 

 

[Tug]

Wonder if he’s running it down so later he can buy it back at a bargain price who knows I certainly don’t just wondering 

[BritManToo]

28 minutes ago, Tug said:

Wonder if he’s running it down so later he can buy it back at a bargain price who knows I certainly don’t just wondering 

He sold a lot of stock to buy Twitter.

When someone dumps a load of shares the price drops, that's how shares work.

[Chomper Higgot]

5 minutes ago, BritManToo said:

He sold a lot of stock to buy Twitter.

When someone dumps a load of shares the price drops, that's how shares work.

Somebody bought those same shares.

 

When somebody buys a load of shares the price goes up, that’s how shares work.

[Chomper Higgot]

I’ve said for a while now Musk is destroying ’Brand Musk’ and with it tge over inflated share prices hitched to ‘Brand Musk’.

[Chigur]

2 hours ago, Credo said:

His cars maybe self-driving, but his companies are not.  

I wouldn't go near a self-driving car. I've worked in the field. Yes, vision is 360 but there are edge case scenarios a car may see that AI can't interpret but a (sober)  human can. The lawyers on the team make more than the designers when it comes to autonomous vehicles.

[SatEng]

People forget that Tesla is just a financial vehicle for Musk - he bought into the company for $6.5m so he has made tremendous returns on this - and the exorbitant stock price has allowed him to spend on his real passion.

That is not Twitter - which is just a vanity project - but SpaceX.

SpaceX is the only company he has started from scratch, instead of buying into an existing technology (even the starlink satellites was an existing program he bought into, as was Neuralink, Hyperloop etc. hoping that these would turn into the "next Tesla").

The problem is that although he has now built up SpaceX to be the dominant player in the launch market, and it is now breaking even, he has been investing in research and development, especially into the development of the massive Starship which has not yet launched but its true goal is to be the vehicle that will get Musk to Mars. All of this research and development, and massive infrastructure in Texas, has been funded by Musk selling shares in Tesla over the past years.

Spaceship, due to its economies of scale, may become commercially viable, but will still require billions in investment for any Mars program. Starlink satellites are making revenue, but not nearly enough to cover the cost of replacing the satellites in a few years time, and may never be profitable, and Tesla cars also face headwinds.

Telsa shares have been hyped to a tremendous degree and still are overvalued against other car companies (Tesla would say it is a technology company not a car company - but so could the others), and those other car companies are also now releasing many new EV models giving the consumer for this product more choice - think of when the Prius was the hybrid of choice but is now just one of many.

So as the Tesla share price inevitably drops, the premium from being a "Musk technology" disappears or may even become a liability for their core customer base, and as Musk now only owns 13.4% of the company he may even get removed as the CEO, then he will have increasing difficulties in self-financing his projects.

His announcement to buy Twitter was exactly the wrong time, as Tesla share price started to drop and more competition coming in, so the need to turn-around Twitter into a profitable company has possibly driven him to some extreme decisions which may backfire.

 

[KhunLA]

55 minutes ago, BritManToo said:

He sold a lot of stock to buy Twitter.

When someone dumps a load of shares the price drops, that's how shares work.

Yep ... along with the whole Nasdaq market is down, on average ...

Along with the auto industries, whether supply lines or simply world economy, and lack of new car buyers.    Also many more EVs to chose on the market, from a year ago.  

 

[Bkk Brian]

Tesla crushed in Consumer Reports reliability rankings despite improvement

Posted on November 15, 2022

Tesla was found to be one of the most unreliable brands in America, according to Consumer Reports’ annual reliability report.

Consumer Reports‘ annual reliability rankings have been released, and with data from 24 brands and over 300,000 vehicles, Tesla fell near the bottom (19/24)

https://www.teslarati.com/tesla-placed-bottom-consumer-reports-reliability-rankings/

 

[stevenl]

2 hours ago, KhunLA said:

Yep ... along with the whole Nasdaq market is down, on average ...

Along with the auto industries, whether supply lines or simply world economy, and lack of new car buyers.    Also many more EVs to chose on the market, from a year ago.  

 

Compare the Tesla share price and you'll see a much bigger decline.

[ozimoron]

2 hours ago, KhunLA said:

Yep ... along with the whole Nasdaq market is down, on average ...

Along with the auto industries, whether supply lines or simply world economy, and lack of new car buyers.    Also many more EVs to chose on the market, from a year ago.  

 

Did you miss the point that Tesla under performed the NASDAQ by a lot?

[Misty]

2 hours ago, KhunLA said:

Yep ... along with the whole Nasdaq market is down, on average ...

Along with the auto industries, whether supply lines or simply world economy, and lack of new car buyers.    Also many more EVs to chose on the market, from a year ago.  

 

Actually it looks like NASDAQ has significantly outperformed TSLA this year:

 

[KhunLA]

1 hour ago, Misty said:

Actually it looks like NASDAQ has significantly outperformed TSLA this year:

 

only for the past 2 months, as fairly neck in neck until Nov.

[stevenl]

1 hour ago, KhunLA said:

only for the past 2 months, as fairly neck in neck until Nov.

That's a great relief for an investor, he only did significantly worse than others in the last 2 months. Isn't that about since the Twitter takeover?

[vangrop]

The explication is very simply. The Tesla shares are, as any other, impacted by supply and demand. E. Musk head shareholder had to sell a lot of his shares periodically to cash for financing his numerous projects. The supply got oversaturated and the share value plunged. The perverse effect of this situation is that we find ourselves in a negative spiral. ie the more the value decreases, the more shares he will have to sell. This is the danger when a majority of shares are in possession of one party. 

[placeholder]

5 hours ago, vangrop said:

The explication is very simply. The Tesla shares are, as any other, impacted by supply and demand. E. Musk head shareholder had to sell a lot of his shares periodically to cash for financing his numerous projects. The supply got oversaturated and the share value plunged. The perverse effect of this situation is that we find ourselves in a negative spiral. ie the more the value decreases, the more shares he will have to sell. This is the danger when a majority of shares are in possession of one party. 

That's not all there is to it. Demand for Tesla has declined sharply. Almost no wait and steep discounts are being ordered. Polls show his Tesla's favorability ratings have declined sharply since Musk amped up his trolling. 

[Credo]

Tesla is suffering needlessly because of Musk's latest flight-of-fancy, Twitter.  The high profile status of Musk is part of what kept Tesla a strong contender in the EV market.  Tesla and Musk are branded the same.   

 

As EVs go, Tesla is increasingly facing stiffer competition from run-of-the-mill car manufactures like GM, Ford and numerous others.  Without Musk touting Tesla, it's just another EV.

 

[Credo]

18 hours ago, Chigur said:

I wouldn't go near a self-driving car. I've worked in the field. Yes, vision is 360 but there are edge case scenarios a car may see that AI can't interpret but a (sober)  human can. The lawyers on the team make more than the designers when it comes to autonomous vehicles.

I'd be a little nervous in a driverless car, but less so in a self-driving car with a driver.  My car has a lot of safety features, including adaptive cruise and Lane Departure warning.  I've become very reliant on those safety features.  

[ozimoron]

1 hour ago, Credo said:

I'd be a little nervous in a driverless car, but less so in a self-driving car with a driver.  My car has a lot of safety features, including adaptive cruise and Lane Departure warning.  I've become very reliant on those safety features.  

He's probably wasted a lot of money oin his driverless pipe dream. Other manufacturers with more capital will soon overtake Tesla. More so because he just destroyed his main market demographic.

[Bkk Brian]

Maybe he's going to start shedding staff as he did when he took over twitter.............

 

Tesla suspends production at Shanghai plant

The Shanghai plant has been focused on making models for export in the last week, the person added.

A media representative at Tesla China did not immediately respond to request for comment.

The plant’s suspension of Model Y assembly at the end of the month would be part of a cut in planned production of about 30% in the month for the model, Tesla's best-selling model, at the Shanghai factory, Reuters had reported.

https://www.reuters.com/business/autos-transportation/tesla-suspends-production-shanghai-plant-internal-notice-2022-12-24

[herfiehandbag]

So, he mortgaged his electric car business to buy twitter?

 

Perhaps not the brightest move?

[Venom]

Musk thought he was buying an online messaging tool but he ends up with an intel bio-security propoganda tool. Now he's up <deleted> creek without a paddle. ????

 

 

 

 

 

 

 

Edited December 26, 2022 by Venom

[KhunLA]

2 hours ago, Venom said:

Musk thought he was buying an online messaging tool but he ends up with an intel bio-security propoganda tool. Now he's up <deleted> creek without a paddle. ????

And it appears the powers to be aren't to pleased about having their propaganda machine taken from them.

 

Never read so much negative news-blips about Musk since he started exposing the influence they exerted with Twit's content, and what they allowed and or censored.

 

Like Trump, he is now the enemy of the puppeteers  ...  more drama to follow ????

[stevenl]

12 hours ago, KhunLA said:

And it appears the powers to be aren't to pleased about having their propaganda machine taken from them.

 

Never read so much negative news-blips about Musk since he started exposing the influence they exerted with Twit's content, and what they allowed and or censored.

 

Like Trump, he is now the enemy of the puppeteers  ...  more drama to follow ????

Musk put himself in the spotlights and is making sure to stay there with extremely erratic decisions.

That's the reason for the negative news blibs.

[placeholder]

9 hours ago, stevenl said:

Musk put himself in the spotlights and is making sure to stay there with extremely erratic decisions.

That's the reason for the negative news blibs.

False pedophilia charges against an ex Twitter executive didn't help much either.

Edited December 27, 2022 by placeholder

[Bkk Brian]

Anyone remember Musk's epic Cybertruck 'bulletproof' window smash fail? Hilarious fail.

 

 

 

[ozimoron]

TSLA is still bombing.

[Jingthing]

So now because of his Twitter folly, a buyer of a Tesla car is representing Musk's bizarrely toxic and divisive right wing politics. That will be a feature for many but a no go for probably many more. It's not as if his brand is a monopoly. Musk is a genius on some things, a self destructive moron on others. Oh well!