Some shareholders say Mr Musk’s unusual Twitter posts – he once made comparisons between Justin Trudeau, the Prime Minister of Canada, and Hitler – have already hurt Tesla.
“The man said so many controversial things,” said Christine Hull, founder and CEO of Nia Impact Capital, a fund in Oakland, California that invests in companies with positive social impact. Are they distracting? Are they confusing? Did he interfere in the value of the shares through his tweets? Absolutely. ”
How Elon Musk bought Twitter
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Blockbuster deal. Elon Musk, the richest man in the world, limited what seemed to be the incredible billionaire’s attempt to buy Twitter for approximately $ 44 billion. Here’s how the deal went:
The initial offer. Mr Musk has made an unwelcome bid of more than $ 40 billion for the influential social network, saying he wants to make Twitter a private company and wants people to be able to speak more freely on the service.
After Mr. Musk became the owner of Twitter, “it’s only getting bigger,” Ms. Hull said. Nia recently sold most of her shares in Tesla, she said, because the fund was unhappy with the company’s response to accusations of racism at its Fremont, California plant.
Mr Musk’s ownership of Twitter may repel some potential Tesla buyers. Among people considering buying an electric car, Democrats outnumber Republicans by almost two to one, according to Morning Consult, a research firm. But Democrats are also the group most likely to be postponed if Mr Musk, in the name of free speech, opens Twitter to extremist views or misinformation.
The acquisition of Twitter could strengthen control over Mr Musk by stock market regulators. He is being sued by a Twitter shareholder who accuses him of missing the regulatory deadline to announce that he has accumulated a 5% stake in the platform.
The lawsuit, filed by Block & Leviton, a Boston law firm, claims that Mr. Musk saved tens of millions of dollars by waiting six days after the deadline to reveal his case. He managed to continue buying shares on Twitter cheaper than would have been possible if his interest had been in the public domain, the lawsuit said.
Mr Musk has a long history of antagonism with the Securities and Exchange Commission. Last month, he failed to persuade a New York judge to release him from a 2018 agreement with the SEC that required him to have a company lawyer check his social media posts if the statements could shift Tesla’s share price.
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