Elon Musk’s Twitter Quest Turns Tesla’s Edge Into a Risk
Many Tesla Inc. investors watched in dismay as Elon Musk plunged into a battle over buying Twitter that pulled his attention away from the electric-car maker. Now that the deal is done, some are fretting Twitter is an even bigger drag on Tesla than before.
Tesla's stock has plummeted 46% this year, compared with a 28% drop for the Nasdaq 100 Index. However, unlike the megacap technology companies that have seen similar or bigger routs, such as Meta Platforms Inc., earnings estimates for Tesla are actually higher than they were a year ago.
Many Tesla bulls see Musk's singular management style as the company's biggest edge over the century-old automakers across the globe. Yet he's been deeply involved in overhauling the social-media company, to the point that he said this week that he had too much on his plate and was working “morning to night, seven days a week.”
“The question some investors are asking is, how many balls can he keep in the air while he's juggling all of these responsibilities?” said Brian Mulberry of Zacks Investment Management. “The concern is that there are only so many hours in the day for Musk to manage all of these projects, and we're starting to see a deterioration in the stock price because of that.”
Tesla didn't reply to a request for comment on Musk's workload. However, Musk, during a trial related to his Tesla pay package in Delaware on Wednesday, said he is now spending almost all his time reorganizing Twitter. He expects the “fundamental organizational restructuring” will be completed by the end of next week.
Apart from Tesla and Twitter, his other ventures include Space Exploration Technologies Corp., or SpaceX, the tunnel construction company Boring Co. and neurotechnology firm Neuralink
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