Tesla shares at lowest level in two years as investors bash Musk | Business and Economy News
The world’s most valuable carmaker is one of the worst performing stocks among major automakers and tech firms.
Tesla shares have extended declines and hit their lowest level in more than two years as investors, including a “fanboy” of CEO Elon Musk, lashed out at the executive as they alleged his purchase of Twitter is distracting him from the electric car company.
Tesla, the world’s most valuable carmaker, is one of the worst performing stocks among major automakers and tech companies this year as investors worry that Musk could also offload more Tesla stock to prop up the struggling social media company.
Investors are increasingly concerned that his antics could hurt the brand and sales of Tesla, the world’s top electric carmaker, which faces increasing competition.
“Elon abandoned Tesla, and Tesla has no working CEO,” KoGuan Leo, the third largest individual shareholder of Tesla, tweeted on Wednesday.
“Are we merely Elon’s foolish bag holders?” the self-described Musk “fanboy” said in a series of tweets. “An executioner, Tim Cook-like is needed, not Elon.”
Tesla shares traded down 1.4 percent on Wednesday after falling as much as 3.2 percent to $155.88 per share, the lowest since November 18, 2020.
Tesla shares have slumped 55 percent so far this year, lagging behind the performances of GM, Ford, Apple and Amazon. They are down nearly 30 percent since Musk closed his $44bn acquisition of Twitter in late October.
Musk said on Tuesday that he “will make sure Tesla shareholders benefit from Twitter long term” without elaborating.
Even Tesla bulls and fans expressed discontent over Musk’s controversial tweets.
“Elon is a brilliant business leader. He will realize soon (if not already) that his polarizing political views are hurting customer perceptions of $TSLA EVs,” Gary Black tweeted
“Customers don’t want their cars to be controversial,” he posted. “They want to be proud as hell to drive them – not embarrassed.”
Goldman Sachs on Tuesday cut the price target for Tesla shares and lowered estimates for Tesla’s deliveries and gross margins for the fourth quarter, reflecting softer supply and demand.
