Elon Musklighthouse company You’re hereThe stock hit a new two-year low of $150.04 on Friday morning, sparking fresh concerns over the billionaire’s recent acquisition and chaotic management of Twitter is collapsing the foundation of his financial empire.
The stock plunge came the morning after Musk kicked several prominent journalists off the platform, and after Musk spent most of this week unloading more than 22 million shares shares of Tesla, worth more than $3.5 billion. Musk has now almost sold $40 billion value of the electric vehicle company’s shares over the past year.
Musk’s tumultuous takeover of Twitter, a deal announced in April and finalized in October, coincided with a truly disastrous year for tech markets. But Tesla underperformed the NASDAQ Technology Sector Index (NDXT) by more than 20 points. Since Friday, the company is down 57.12 percentage since the beginning of the year compared to NDXT being down 35.53%. The value of the company dropped from more than $1 trillion at the start of the year, to less than $500 billion, and cost Musk his title of “the richest man in the world” In the process.
Friday’s plunge came after Musk was suspended New York Times journalist ryan mac, The Washington Postit is Drew HarwellMashables matte binderCNN reporter Donie O’SullivanThe Interception Micah Leefreelance journalist Aaron Rupar, political commentator Keith Olbermann and freelance journalist Tony Webster of Twitter. Most had criticized Musk’s content moderation decisions. Earlier this week, Musk impulsively rewrote Twitter’s content policies to deem all posts, including real-time location data, a bannable offense. The platform-wide policy change appears to have been created retroactively to vindicate the platform delete jack sweeney accounts, which tracked the movements of planes and private jets through publicly available aeronautical data. Musk accused reporters covering Sweeney’s ban of posting “my exact real-time location, essentially the coordinates of the assassination, in (obvious) direct violation of Twitter’s terms of service.” rolling stone did not identify any instances of journalists posting direct coordinates of Musk’s location.
During the week, investors called on Musk to find someone else to handle the day-to-day operations of Twitter and focus on Tesla again. On Wednesday, the electric vehicle company’s third investor, Leo KoGuan, tweeted that Musk had “abandoned Tesla” and that the company “has no working CEO.” Following the platform’s journalistic purge, investor Joe Cirincion tweeted a call for Musk to quit Twitter, accusing him of “killing the business with his antics”.
The company itself admitted that they are “heavily dependent on the services of Elon Musk, Tesla’s Technoking and our CEO”, to run the business. If investors have noticed, so have major financial institutions. Goldman Sachs reduce price targets for Tesla earlier this week, citing the increasingly “polarizing” nature of Tesla’s branding given Musk’s involvement on Twitter, and recommended the company return to its “core attributes of sustainability and technology.
Musk is also facing the threat of sanctions abroad. European Commission Vice-President Vera Jourova on Friday accused the company of violating the EU’s Digital Services Act and the Freedom of the Media Act through its “arbitrary suspension of journalists”.
“There are red lines,” she said tweeted. “And sanctions, soon.”