Electric car manufacturer Tesla’s stock value is below $150, making it the lowest stock value since CEO Elon Musk took over Twitter in October.
Just before 3 p.m. Tuesday, the stock was trading at $140.34, the lowest the price has been since November 2020.
Shares opened up on Monday just below $150 a share, with hopes from investors that Mr. Musk would step down as CEO of Twitter after a public poll on the site had the majority of users calling for him to step down.
Mr. Musk has made no mention of when he will step down. He had said when the poll was posted that he’d abide by result, but hasn’t explicitly said he would since the poll closed.
While Tesla’s downturn mirrors somewhat of a bear market for many industries, it is likely no coincidence that the dramatic drop in Tesla’s stock price comes during Mr. Musk’s troubles at Twitter.
Analysts say the stock dip isn’t about Tesla itself, though controversies surrounding its self-driving car technology are lingering, but about Mr. Musk’s decisions at Twitter having damaged the company’s brand image.
SEE ALSO: Musk says only paying users will get voting power to shape Twitter policy
The issues go beyond shareholders’ fears however and have penetrated the walls of Congress.
Sen. Elizabeth Warren, Massachusetts Democrat, sent a letter Monday to Tesla’s board of directors, implying that Mr. Musk has not lived up to his legal duties at the company and the board needs to rein him in.
“The first weeks of Mr. Musk’s Twitter ownership have raised questions about possible violations of securities or other laws, including whether Mr. Musk is funneling Tesla resources into Twitter, a potentially ‘improper diversion of resources that might impact Tesla’s sales and earnings and could result in ‘delays in programs at Tesla.’” the letter reads.
Ms. Warren also says in her letter that because Twitter relies on advertisers, many of which are Tesla’s competitors, Mr. Musk would have an incentivize to tweak the algorithm to prioritize Tesla products over others.
The letter points out that the debt the company, and Mr. Musk, had to accrue to purchase Twitter, has placed Tesla in a bad spot.
Mr. Musk opened his tenure at Twitter with historic layoffs, followed by more sales of Tesla stock, something he said he would not do, and a planned auction of Twitter’s office furniture.
Despite this, Mr. Musk has remained adamant and defiant in the face of his critics and responded dismissively to Ms. Warren’s letter.
“United States has definitely been harmed by having her a senator lol,” Mr. Musk tweeted.
Thank you for reading this post, don't forget to subscribe!