Tesla shares recorded their worst week since the beginning of Corona in March 2020, and lost $ 85 billion of their market value due to investor doubts about the future of the electric car company headed by billionaire Elon Musk, CEO of Twitter at the same time.
Tesla shares closed, on Friday, at their lowest level in more than two years, which led to a decrease in its market value to less than $ 400 billion. The stock lost 18 percent this week, according to the newspaper Financial Times.
Pressure on Tesla stock has increased in recent months due to Musk’s massive sell-off to fund his $44 billion acquisition of Twitter, as well as growing concerns about its car sales prospects.
Tesla shares fell Thursday, 9 percent, after it said it would offer discounts of $ 7,500 to American consumers on two of its best-selling models, an announcement that raised concerns about consumer demand, according to the newspaper.
Subsequently, Musk promised via Twitter that he would not sell any more stake in Tesla for at least a year. He said he was also open to the idea of buying back these shares.
Musk, who recently descended from the position of the richest man in the world, has sold nearly $23 billion in stock since announcing his $44 billion acquisition of Twitter. Despite promising in April to stop doing so, he has sold stakes in Tesla three times. That angered major investors, who felt Musk was abandoning the automaker to focus on his new company, Twitter.
The year 2022 will remain engraved in Musk’s memory, even if he tries to forget some of its details and events. As much as this year was full of many successes, it was also turbulent for him because of the financial losses he suffered and the legal battles he fought, according to a Reuters report.
And at a time when the CEO of Tesla and SpaceX ended 2022 with major accomplishments, from undertaking a strong global expansion for Tesla to playing a supportive role for the Ukrainian resistance in the face of the Russian invasion, everyone focused on Musk’s tweets and what he would do to change the Twitter platform, according to the agency.
Twitter is important, and what it lacks in scale, revenue or ambition it makes up for in clout and influence. The communication platform has outsized and continues to be the preferred social media platform for world and industry leaders, revolutionaries and the media, according to Reuters.
Musk tweeted in October, saying, “Freedom of expression is the cornerstone of a functioning democracy, and Twitter is the digital arena in which matters vital to the future of humanity are discussed.” This conviction has come under severe pressure. In the past few days, he has temporarily suspended the accounts of journalists from the New York Times, the Washington Post and CNN.
And Forbes announced that billionaire Elon Musk, who owns Twitter and Tesla, lost the title of the richest man in the world, at the beginning of December, after incurring heavy debts to buy the large social media company and sell shares in the electric car company in order to finance the $ 44 billion Twitter deal.
And Musk had announced on Tuesday night that he would step down from the presidency of Twitter as soon as he found a “crazy enough person” to take his place, indicating that he would then take over the management of the platform’s “software and server teams”.
Musk said in a tweet, “I will resign from the position of CEO as soon as I find someone crazy enough to take over the job,” in a situation in which he seemed to adhere to the outcome of the referendum he launched on the platform, in which the majority of Twitter users supported his stepping down from his position in the giant communication group.
The billionaire had asked Twitter users on Sunday if he should step down as head of the social networking site.