The electric car brand giant Tesla has appeared on the news again, and this is not even about the current trend around his newly acquired social media platform, Twitter. But again, if we look closely, they are interrelated.
In the early hours of Wednesday, November 9th, Tesla stock prices got people wondering what could be going on, and there seems to be a reason for people to panic. With the acquisition of Twitter, the new regulations proposed to the users, especially those with the blue ticks, could pose a reason to assume panic in the stock market.
In this interesting article, how about we consider what could be the motive behind the possible fears of investors, the Tesla company as a brand, and what happened to the stocks within 24 hours?
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Is Tesla stock for sale?
With different controversies experienced after the acquisition of the popular social media app, there seem to be more fears over the whopping 44 billion dollar buyout of Twitter, especially when Elon Musk, the CEO of Tesla, had earlier promised not to sell any more stocks.
As of the early hours of Wednesday, Tesla CEO has sold an additional 19.5 million shares of the electric vehicle producer for $3.95 billion to the public.
Recall that Tesla had experienced a three-for-one stock split earlier in August, which made the price of its shares drop beyond measure.
Is Tesla stock for sale? Well, if you are just reading this, then you must have missed out on the whopping deal.
Did Tesla recall more vehicles?
Tesla has experienced different sides of media boost this period. While a few were commendable, others were simply news that negatively affected and further pulled down the value of Tesla stocks.
Recall that Tesla a few months ago recalled about 1.1 million cars due to a window glitch that was raised for some Model S, X, 3, and Y vehicles.
Barely a day ago, about 40,000 Tesla cars were recalled as they had experienced some power steering challenges.
With the list of controversies encountered this week alone, it is easy to understand the fall in shares of about 50%, especially after the CEO has taken a different turn from not selling shares as mentioned.
How many percent stakes has Tesla sold
With the most recent sale, Mr. Elon Musk has now sold about $20 billion worth of Tesla stock since declaring earlier this year that he had acquired a stake in Twitter.
He sold $8.5 billion worth of Tesla stock in April and another $7 billion worth in August of this year.
Is the pay cut on Twitter affecting Tesla stocks?
One can only imagine if some of the driving actions on Tesla stocks were fueled by the 50% salary cut on Twitter staff. Oh! Did you miss that? Well, the Twitter boss has reported that the social media application may need to reconsider a newer path to generate more revenue.
According to a recent tweet from the CEO, Twitter is reportedly losing more than $4 million every day, so there is "no choice" but to reduce staff. He has also cited a "huge loss in revenue" as the result of "activist groups lobbying for advertising."
The social media platform is taking a different turn, and part of the change is charging a verified user account for $8, as against the earlier suggested $20.00.
Should one panic over Tesla shares?
While some would be rigid on this decision, especially for people who consider a business decision on antecedents of the individual and not the books or charts, you must have your broker provide you with adequate information on this decision.
However, left to me, I believe Tesla is a promising stock, and the future has no bounds to what it holds for the future.