Twitter has been at the center of a tirade since Elon Musk acquired the platform. The historic $44 billion deal of the mercurial new CEO has been in the headlines since the announcement in early 2022. But, the process for the completion was as excruciating as the current circumstances on the microblogging platform. Since the acquisition, the billionaire has taken many radical steps to reinvigorate the platform into ‘Twitter 2.0’, a rosebed of free speech. But, the new purchase has been hurting his other ventures.
Since its foundation in 2003, the most revered electrical vehicle in the market is suffering due to its CEO. While Musk is busy tweeting about the liberal and Democrat exposé, firing employees for criticizing him publicly, or participating in menial Twitter skirmishes, his EV venture is hurting badly. There has been a decline in the price stocks of the company as shareholders are not happy with his new obsession rather than acquisition. The repertoire of Tesla and the CEO has been tarnished, so how badly is Tesla hurt due to Elon’s new toy, Twitter?
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Elon Musk Ensured Tesla Shareholders Benefit From Twitter
On December 13th, 2022, the market closed for Tesla at $160.95 displaying a decline of more than 4%. It is the lowest for the electric vehicle company since October 28th, 2022. While the tech world is recovering from the inflation reports, Tesla, along with Rivian, an electric truck maker company saw a 26.93% decline.
Leo KoGuan, the chairman at SHI International Corp. and the third largest shareholder in Tesla is not happy. In a tweet, he expects the board members “will perform shock therapy to resuscitate stock price”.
No longer about fundamental of Tesla but smart and powerful negative poison gazing Tesla. We are shareholders are accidental war casualties
The board is established to protect SH. The board members are smart, hopefully they will perform shock therapy to resuscitate stock price https://t.co/d1UhhXQ8Tp
— KoGuan Leo (@KoguanLeo) December 13, 2022
But, Elon is ensuring that the Twitter purchase will benefit the shareholders in the long term. The new CEO of Twitter resolved to complete the Twitter deal from his pocket, but Musk had various investors who aided him through debt and equity financing. Amongst the various channels, he sold Tesla stocks worth $20 billion to acquire the platform.
I will make sure Tesla shareholders benefit from Twitter long-term
— Elon Musk (@elonmusk) December 13, 2022
Once he acquired the platform, he neglected his role as the CEO of the company. There are many complaints and recalls of electric vehicles. The vehicle received flak for its weak construction which includes the taillights, airbags, and trunk lid. Along with this, the fully self-driving car aspirations seem gloomy with the company slammed with a lawsuit regarding mistrust and misleading information about the new beta testing feature.
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The Electric Vehicle Has Lost The Trust And Favorability Of Adults In The USA
In November 2022, Morning Consult released a report about the “net favorability and trust” of US adults as per their political inclination. The results were staggering. In January 2022, there were 22% of Democrats looking forward to buying a Tesla, and a mere 17% of Republicans considering buying the car.
But, eventually, the numbers decreased. In November 2022, as per the Morning Consult report, the number of Democrats fell by 20.3% while there was a 3.9% increase in Republicans buying the Tesla. Another YouGov..com report suggested a thin rise in the negative reviews for Tesla topping the positive ones. Musk’s leadership has posed a threat to its brand credibility.
Marion Natarelli, who is a partner with a brand agency MBLM, said, “I think if you’re a senior leader at Tesla, you’re praying and hoping that either Elon changes focus or gets off this Twitter thing. You could point to Kanye as an example of how something can erode very quickly”.
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