Elon Musk has pledged that his acquisition of Twitter will eventually turn out to be profitable for shareholders of Tesla (Tesla stock) in the long run. It appears that investors have differing views. The manufacturer of electric vehicles could come under increasing pressure to implement more significant changes, including a short-term switch in leadership at Tesla.
Wednesday’s premarket trading for Tesla (NASDAQ:TSLA) shares was roughly 1% lower than Tuesday’s closing price, which was more than 4% lower than Monday’s closing price. It was a decline that caught everyone’s attention on a day when most stock markets in the United States advanced after the release of data showing that inflation in the United States for November was lower than predicted.
Since Elon Musk completed the acquisition of the social networking platform, shares have decreased by more than 28%, underperforming the Nasdaq Composite, which has increased by almost 4% during the same period.
Late on Tuesday, Musk sent a message on Twitter stating, “I will make sure Tesla shareholders profit from Twitter long-term.” He should have provided additional information regarding how his social media network ownership could benefit Tesla.
It may take time to identify the cross-over benefits between Twitter and Tesla. Still, experts and investors have proposed a number of these benefits anyway. For instance, Twitter’s expertise with advertisers and targeted adverts might be linked to Tesla’s operating platform, allowing drivers an experience comparable to that of Google Maps to locate businesses and entertainment options.
Both Musk and Tesla ignored requests for comments on the tweet.
Only some people will hold out until they see the fruits of their labor. It was urged by Ross Gerber, the head of Gerber Kawasaki Wealth Management and a longtime supporter of Tesla, that the board of directors of Tesla should choose an interim CEO. In a trial that took place last month about Musk’s compensation at Tesla, it was revealed that he had selected a prospective successor as CEO, although the candidate wasn’t named. However, Musk did not name the individual.
There has been no indication whatsoever from Musk that he is considering leaving Tesla. In a tweet sent out on Tuesday, he blamed the struggles of Tesla’s stock on “macroeconomic tides.”
Tesla Stock Price Forecast
Some evidence suggests that things are moving at a more leisurely pace. On Tuesday evening, an analyst working for Goldman Sachs named Mark Delaney lowered his price estimate for Tesla stock from $305 to $235, citing a more difficult supply and demand balance as the reason. That means more electric vehicles are entering the market, but fewer consumers are purchasing them.
And analysts at Saxo Bank highlighted statements from Volkswagen (VWAPY) that electric-vehicle growth was slowing in Europe as one factor that was affecting sentiment around green-transition firms. However, they added that Tesla could be subject to steeper decreases than other green-transition equities. He still ranks Tesla stock Buy.
As a result of falling crypto and tech stock prices, growth investors may reduce their exposure elsewhere, leading to increased selling that is not solely based on fundamental criteria like earnings and cash flow. Technical analysts in the stock market have been pointing out for weeks that the stock chart pattern for Tesla is concerning. Traders will jump on patterns that have the potential to exaggerate any stock moves, whether they are going up or down.
Tesla stock investors face challenges not limited to those posed by the social media platform Twitter. These days, several factors are working together to work against the stock.
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Author Valerie Remorosa 
