Will Tesla Take A Hit From Elon Musk's Twitter Rebranding? Analyst Weighs In
Portfolio Pulse from Shanthi Rexaline
Tesla CEO Elon Musk's rebranding of Twitter to 'X' has raised concerns among analysts about potential indirect impacts on Tesla. Gary Black of Future Fund, which holds Tesla as its second-largest holding, suggested that if 'X' doesn't become cash-flow positive, Musk might sell more Tesla shares to keep operations going. This could have a negative psychological impact and depress Tesla's stock due to increased share supply. Tesla's stock is currently recovering amid concerns about margins, with the launches of Cybertruck and Model 3 refresh seen as potential catalysts.
July 26, 2023 | 2:04 pm
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Elon Musk's rebranding of Twitter to 'X' could indirectly impact Tesla if 'X' doesn't become cash-flow positive, leading to Musk selling more Tesla shares and potentially depressing the stock. Tesla's stock is currently recovering amid margin concerns.
The rebranding of Twitter to 'X' by Elon Musk, who is also the CEO of Tesla, has raised concerns among analysts. If 'X' doesn't become cash-flow positive, Musk might need to sell more of his Tesla shares to keep the operations going. This could increase the supply of Tesla shares in the market, potentially leading to a decrease in the stock price. Additionally, such a move could also have a negative psychological impact on investors, further depressing the stock.
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