Musk called Twitter the “digital city square” of the world and talked about protecting freedom of speech. But, the move has raised concerns about the depth of executive talent at Tesla Inc., should its attention continue to be divided with social media platforms.
Elon Musk’s move to buy Twitter for $ 44 billion has raised concerns about the depth of executive talent at his more valuable company, electric car maker Tesla Inc., should his attention be further divided with social media platforms. In announcing the deal on Monday, Musk called Twitter the world’s “digital city square” and talked about protecting freedom of speech, but he also rekindled concerns that a man once admitted to sleeping on the factory floor during the launch of the Model 3 and last sedan. years of talking about working “crazy time” just having so much energy to spend.
“Tesla feels very much like a startup even though it’s a trillion -dollar company,” said Tesla investor Ross Gerber, chief executive of wealth management firm Gerber Kawasaki. “It’s as big or bigger than the biggest company in the world, but it doesn’t have the management infrastructure like other companies.”
In addition, Tesla is racing to increase production at new plants in Texas and Berlin amid supply chain disruptions and higher raw material costs, as well as getting jobs at its largest plant in Shanghai back on track during the COVID-19 case increase in very much. Musk said in January Tesla had too much on its plate and would not introduce a new model like the Cybertruck this year.
Tesla has managed to overcome its problems, but the heavier pull of its focus by Twitter worries investors.
“I’m worried this is going to be a nuisance,” said a fund manager with a key position at Tesla who asked not to be identified. “He’s balancing the supply chain and plant delays and the expansion of the energy storage business and this is not appropriate at all.”
Tesla shares have fallen 8% since Musk first revealed its initial stake in Twitter.
Tesla could not be reached for comment, but an insider at the company who asked not to be identified said investor concerns had been “too much” and Musk was still heavily involved at the carmaker.
Musk also leads rocket company SpaceX, as well as brain chip startup Neuralink and the Boring Company tunnel effort.
Tesla has seen executive turnover before with the departure of co -founder JB Straubel in 2019 and president Jerome Guillen last year.
Tesla, founded in 2003, has grown to be the most valuable automaker but there are only two executives listed alongside Musk in its leadership team on the company’s website, compared to 17 at General Motors and 11 at Volkswagen.
Tesla’s current high -profile leadership outside Musk includes Chief Financial Officer Zachary Kirkhorn and Senior Vice President Andrew Baglino, who handles powertrain development. Both are known to investors from their appearances on Tesla’s quarterly earnings conference call.
Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, who owns a limited number of Tesla shares in accounts he manages, wondered if Musk would just install someone else to lead Twitter.
“Apparently that’s the most logical thing to do,” he said. “Looks like he’s already full of Tesla and SpaceX.”
Gerber said maybe Musk needs executive No. 2 as strong as he was at SpaceX with President Gwynne Shotwell.
Ian Beavis, chief strategy officer at auto consulting AMCI, worries Twitter Musk’s purchase, with its controversy over political and social issues, could even damage the Tesla brand.
Some investors remain worried about Musk’s plans, which are worth $ 268 billion according to Forbes, to fund the Twitter deal. Twitter said Musk secured $ 25.5 billion in debt and margin loan financing and provided $ 21 billion in equity commitments. It’s unclear whether Musk will sell shares of Tesla to help fund the deal.
Musk holds 172.6 million shares in Tesla and he has borrowed about half of his shares, according to Tesla filings. If he put more shares as collateral to get a $ 12.5 billion margin loan he might be left with about 30 million unsecured shares, according to Reuters calculations.
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
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