Billionaire Elon Musk’s decision to go ahead and follow through with the buyout deal for Twitter made stocks of the social media giant soar but Tesla investor are worried that Musk was spreading himself too thin.
Earlier this year, Musk sold over USD 15 billion worth of Tesla shares to fund acquisition of Twitter. He had earlier threatened to abandon the takeover citing large number of fake accounts.
While there was no insight into another round of potential stock sale from Musk, Wedbush analyst Dan Ives warned that the Tesla CEO’s interest in closing the deal would weigh on the company’s shares.
“We see lingering impacts from Musk stock sales as a drag dissipating but the big worry is Musk juggling too many balls at the same time,” Ives said as quoted by Reuters.
“We see minimal benefit for Musk owning Twitter for Tesla investors going forward.”
Musk also heads spacecraft manufacturing company SpaceX and is a co-founder of neurotechnology company Neuralink and The Boring Company.
Twitter shares, which closed at their highest level since April, were down about 2% on Wednesday, while Tesla fell nearly 6%.
(With inputs from agencies)
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