Twitter fiasco: Musk says something reassuring about Tesla
Elon Musk is undoubtedly the architect of Tesla (TSLA) – Get the report from Tesla Inc. Hit.
Investors are acknowledging this by placing huge faith in the electric vehicle maker whose promises of becoming a tech empire have made it the world’s sixth most valuable company by market capitalization, just behind Apple. (AAPL) – Get the Apple Inc.Saudi Aramco, Microsoft (MSFT) – Get the Microsoft Corporation reportAlphabet (GOOGL) – Get the Alphabet Inc. report. and Amazon (AMZN) – Get the report from Amazon.com Inc..
Investors seem confident that as long as Musk is in charge, Tesla will continue to disrupt the auto industry and beyond tech. Any sign that the billionaire is focusing his attention and energy less on Tesla is likely to seriously scare off investors.
That’s what happened over the past three months with the launch of a $44 billion takeover bid on microblogging site Twitter. (TWTR) – Get the Twitter Inc. report. by Musk. That offer was the start of a saga marked by twists and turns, public clashes and now a legal battle after Musk withdrew his offer due, he says, to Twitter’s bad faith regarding the number of fake accounts, or spam bots, present on the platform. A five-day trial is scheduled for October unless the two sides reach an agreement by then.
Investor concern is evident in the decline in Tesla shares since the offer was first made. The shares have lost 27.4% of their value to $742.50 at the time of writing. On April 13, the date before Musk’s bid, Tesla stock closed at $1,022.37. However, this drop also comes against a backdrop of a general decline in the markets, on growing fears of recession.
‘I am involved’
For Tesla investors and fans worried the Twitter saga will distract from the tech mogul, Musk just sent a reassuring message
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“Things have obviously changed dramatically over the past three years, going from a near life or death to a business with consistent cash flow and industry leading margins. I wonder if you can comment on your personal role in the company and if you see that changing in terms of your role and time spent in the company over the next three or four years,” an analyst asked The Billionaire on the earnings call. second quarter of Tesla on July 20. “I think you said a couple of things [like] you wouldn’t answer calls unless there was something unusual and you’ve answered every call since then.”
Musk responded, first humorously, then seriously.
“I did a lot of unusual things, let’s face it,” said the entrepreneur. “If there’s only good news, I won’t be on the call. But a tough situation like with the shutdowns in China, then I’ll be on the call, relatively speaking. [if] there is bad news.”
“If all we have is good news, I won’t be on the call,” he smiles.
Then he got serious again.
“I’m engaged,” Musk continued. “I’m going to work [at]You’re here ; I can helpfully advance the cause of sustainability and self-reliance.”
The company announced stronger-than-expected second-quarter results on July 20, although its profit margins narrowed due to soaring input costs. Revenue rose 41% year over year to $16.94 billion. Automotive gross margins were 27.9%, down 500 basis points from a year ago.