Elon Musk’s move to buy Twitter for $ 44 billion has raised concerns about the depth of top talent in his most important company, electric car maker Tesla Inc, in the event that his attention is diverted by social media. Announcing the deal on Monday, Musk called Twitter the “digital village” in the world and talked about defending free speech, but also raised fears that a man once admitted to lying on the floor of a factory during the launch of the Model 3 sedan and ended up. the year in question for working “hours of madness” has a lot of potential to maintain. Tesla feels like a startup even though it is a multi-billion dollar company, ”said Tesla investor Ross Gerber, chief executive of the wealth management company Gerber Kawasaki. “It’s bigger or bigger than the big companies in the world, but it doesn’t have the same administrative infrastructure as other companies.”
In addition, Tesla is rushing to increase production in new plants in Texas and Berlin amidst the cost of purchasing and the cost of raw materials, as well as finding work at its largest factory in Shanghai back on track during a spike in COVID-19. cases there. Musk said in January Tesla had a lot on his plate and will not be introducing new models like Cybertruck this year. Tesla has managed to get rid of its problems, but the heavy pull of its focus on Twitter worries investors.
“I’m afraid this will be a distraction,” said another fundraiser at Tesla, who asked not to be named. “You are facing problems with supply chain and factory delays and an increase in energy storage business and this is not related at all.”
Tesla shares have dropped by 8% since Musk first revealed his share on Twitter.Tesla could not be reached for comment, but an insider who asked not to be named said investors’ problems were “over” and Musk was still heavily involved in the automaker.
Musk also leads rocket company SpaceX, as well as brain-chip startup Neuralink and tunnel venture Boring Company. Tesla has seen huge profits in the past with the departure of founder JB Straubel in 2019 and president Jerome Guillen last year.
Tesla, founded in 2003, has grown into a very important car manufacturer but there are only two executives listed with Musk in his leadership team on the company’s website, compared to 17 at General Motors and 11 at Volkswagen.
Tesla’s current top leadership outside of Musk includes Chief Financial Officer Zachary Kirkhorn and Deputy Prime Minister Andrew Baglino, in charge of powertrain development. Both are known to investors for appearing on Tesla quarterly conference revenue streams.
Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, who owns a limited number of Tesla shares in the accounts he owns, wondered if Musk could just hire someone else to lead Twitter.
“It seems like that would make a lot of sense,” he said. “It looks like his hands are full of Tesla and SpaceX.”Gerber said maybe Musk needs a strong No. 2 official as he has in SpaceX with President Gwynne Shotwell.
Ian Beavis, chief executive officer of AMCI’s auto consultancy strategy, is concerned that Musk’s purchase of Twitter, and its political and social controversies, could hurt even the Tesla brand.
Some investors are still worried about Musk’s plans, which cost $ 268 billion, according to Forbes, to fund the Twitter deal. Twitter said Musk had secured $ 25.5 billion in debt and margin loans and was offering a $ 21 billion equity commitment. It was not immediately clear whether Musk would sell Tesla shares to help finance the deal.
Musk owns 172.6 million shares in Tesla and has already borrowed about half of his stock, according to Tesla documents. If he makes a lot of shares as collateral to get a $ 12.5 billion loan he may be left with an estimated $ 30 million in pledges, according to Reuters statistics.
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