Elon Musk is abandoning Tesla since he bought Twitter, and it’s starting to show

If Tesla can do without ads, it’s because its flamboyant leader, Elon Musk, manages to get the brand talked about continuously on social networks. But what happens when he gets distracted by a new project?

Unlike historical companies, Tesla stock isn’t really a barometer of the brand’s financial health or business success. The stock price is capable of going on a rollercoaster ride based on Elon Musk’s announcements alone. It must be said that speculators are on the lookout for the slightest signs that could allow them to win the bet. Since Elon Musk was forced to complete the takeover of Twitter on October 27, Tesla stock has been falling.

From over €300 to €180 in a few weeks

During the summer, the Tesla share exceeded €300 on several occasions, on November 21 it flirted only around €180. Forecasters even estimate that it could drop to €150. Whereas last year, in November 2021, the action exceeded €400. It’s a bit of a cold shower.

Tesla share price over one month // Source: Capture google finances

It must be said that to acquire Twitter, Elon Musk had to part with several billion dollars of Tesla stock, and this has an inevitable impact on its price. If Elon Musk does not quickly restore trust in Tesla, it could have a problematic economic impact on the company.

Twitter: Elon Musk is obsessed with his new acquisition

Elon Musk has always been able to carry out the various projects he launches. In a busy schedule, the entrepreneur has always known how to divide his time between SpaceX and Tesla, and even other projects like the Boring Company.

Except that since the acquisition of Twitter on October 28 (and even since April when he decided to take a look at the platform), Elon Musk seems busy blowing hot and cold on the social network and its unfortunate teams. The methods used by Elon Musk are even controversial and all this is starting to tarnish the aura of the entrepreneur with investors.

Is Tesla taking a back seat? Musk, of course, continues to talk about his company from time to time, promising, for example, the new version of his autonomous driving for the Thanksgiving holidays (November 24). However, the excitement around the manufacturer doesn’t seem to be quite the same anymore. As a good part of the communication strategy is based on the escapades and wacky ideas of the entrepreneur, Tesla is necessarily going through a slump, which is not helped by other news that is tarnishing its image a little.

Accidents, “recalls” and ongoing investigations

Several miscellaneous events do not help to give a positive image of the brand. While an accident in China revives fears of possible failures, the brand must also make certain updates remotely to correct problems considered as recalls by the American authorities. If these problems are common to many manufacturers, they are more widely commented on and highlighted when it comes to Tesla.

Elon Musk’s compensation, of nearly 56 billion dollars, is also in the spotlight in the United States in the light of an ongoing trial. As for rumors about large stocks of Tesla vehicles in China, they can quickly destabilize the confidence placed in the brand for its hitherto undeniable commercial success.

It doesn’t take much for the brand’s image to deteriorate further, and even if Tesla is preparing a blast for the delivery of the first Tesla Semis, it would surely take something a little stronger to restore the brand’s image. and prevent the stock from continuing to fall.

It will be time for Elon Musk to show that he has not completely abandoned Tesla, in order to reassure investors and customers that he remains concerned about the future of the brand.

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