Elon Musk: Wall Road asks if Musk can handle Twitter, Tesla and extra

Because the mud settles on Elon Musk’s $44 billion buyout of Twitter, analysts and buyers are debating one essential query – has the billionaire entrepreneur behind Tesla and SpaceX bitten off greater than he can chew?

Musk, who additionally runs brain-chip startup Neuralink and tunneling agency the Boring firm, is predicted to grow to be interim chief of Twitter, in accordance with an individual accustomed to the matter, after he fired CEO Parag Agarwal and different prime firm officers.

“He’s stretching himself skinny,” stated Dennis Dick, retail dealer at Triple D Buying and selling.

“It’s a must to be involved that possibly we’re not going to get as a lot consideration on Tesla as we had been (getting) previously as a result of Twitter’s going to be a giant venture for him.”

Stakes are excessive for Tesla, which is scaling up manufacturing at two mega factories in Texas and Germany and faces rising competitors from legacy automakers resembling Ford Motors and Common Motors Co.

Tesla’s inventory has misplaced almost a 3rd of its market worth since Musk made a suggestion to purchase Twitter in April, greater than double the decline within the benchmark S&P 500 index in the identical interval.

Musk has stated he desires to “defeat” spam bots on Twitter, have fewer limits on content material that may be posted and stop the platform from changing into an echo chamber for division.

However he has not provided particulars on how he’ll obtain all this and who will run the corporate.

Mike Ramsey, vp of automotive at Gartner, additionally stated Tesla’s management hierarchy was additionally not as clear as SpaceX and other people on the electric-vehicle maker should step as much as take cost of the operations.

Tesla gross sales additionally may very well be affected by Musk’s actions of opening up Twitter to some beforehand banned people — although whether or not it’s a web optimistic or unfavorable is up for debate.

“Shopping for Twitter may be a turnoff for some prospects, however on the identical time, we predict it might open a chance for brand new prospects,” stated CFRA Analysis analyst Garrett Nelson.

Nelson is amongst those that imagine that Musk can deal with the assorted roles whereas delivering on Tesla’s targets.

“If anybody is able to pulling off this juggling act in our view, it is Elon,” he stated.