January 29, 2023


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Why Musk's Twitter Show Shook Tesla Investors

Why Musk’s Twitter Show Shook Tesla Investors

Some contributors say Musk’s unofficial Twitter posts — he once made comparisons between Justin Trudeau, the prime minister of Canada, and Hitler — actually hurt Tesla.

“The guy said a lot of controversial things,” said Kristen Hull, founder and CEO of Nia Impact Capital, a fund in Oakland, California that invests in companies with positive social impact. “Are they distractions? Are they confusing? Are you getting into the value of a stock through his tweets? Definitely.”

Ms Hall said that Musk has become the owner of Twitter, “It’s just getting older”. She said Nia recently sold most of its shares in Tesla, because the fund was unhappy with the company’s response to accusations of racism At its factory in Fremont, California.

Mr. Musk’s ownership of Twitter could put some potential Tesla buyers off. Among people considering buying an electric car, Democrats outnumber Republicans by about two to one, According to Morning ConsultResearch company. But Democrats are also the group most likely to be put off if Mr. Musk, in the name of free speech, opens Twitter to extreme opinions or misleading information.

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The Twitter acquisition could intensify oversight of Mr. Musk by stock market regulators. He was sued by a Twitter contributor who accused him of missing a regulatory deadline to report that he had raised a 5 percent stake in the platform.

The lawsuit from Boston law firm Block & Leviton alleges that Mr. Musk saved himself tens of millions of dollars by waiting six days after the deadline to disclose his stake. The lawsuit alleges that he was able to continue to buy Twitter stock at a cheaper rate than would have been possible if his interest was public knowledge.

Mr. Musk has a long history of animosity with the Securities and Exchange Commission. Last month Failed to convince a New York judge For his release from a 2018 agreement with the Securities and Exchange Commission, which requires him to have the company’s attorney check his social media posts if the data could move Tesla’s stock price.