Yahoo Finance 'I’ll say what I want': Elon Musk doesn't care if his fiery tweets scare off buyers and advertisers — 'so be it' if he loses money. Is this bad news for Tesla shareholders?
Elon Musk is not often one to shy away from expressing himself, even if his statements drum up controversy, which at times has been costly.
“I’ll say what I want, and if the consequence of that is losing money, so be it,” Elon Musk told CNBC on May 16.
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Tweeting is Musk’s preferred medium of communication, and he had already established a track record of questionable behavior on Twitter long before he purchased the social media platform last year.
In 2018, his tweet about “funding secured” for a potential acquisition of Tesla attracted a lawsuit from the Securities and Exchange Commission. He also called British caver Vernon Unsworth a “pedo guy” that same year, which resulted in another lawsuit.
Since then, the tech billionaire has authored tweets that mocked Bill Gates’s personal appearance, compared Canadian Prime Minister Justin Trudeau to Adolf Hitler and taunted a disabled ex-Twitter employee. Most recently, he compared billionaire George Soros, who recently divested his stake in Tesla, to comic book supervillain Magneto.
Musk’s comments have attracted criticism from journalists, business peers and some world leaders. However, his recent remark about “losing money” could be a nod to the fact that the comments are making a dent in his various businesses.
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Business impact
Musk’s brazen communication style hasn’t traditionally impacted any of his various businesses. Tesla’s valuation has been strong over the past five years, while SpaceX has retained most of its government and commercial contracts. But there are some signs that this could be changing.
“The value of my shares has been cut in half since he made his move to take over this platform. I love my Model 3, but he is killing the company with his antics," Joe Cirincione, a national security analyst and author, tweeted last year.
Meanwhile, as previously mentioned, Soros has cut all ties with Musk and sold all of his Tesla shares in the first quarter of this year.
More bad news for Tesla shareholders?
Tesla stock has lost more than 25% of its value over the past twelve months. The stock is also trading about 57% lower than its all-time high.
Looking ahead, investors have bigger concerns than the CEO’s tweets. Tesla is apparently losing market share in China, as other electric vehicle manufacturers chip away at its dominance. Meanwhile, Musk warned investors that the company faces a difficult year ahead as banks cut back on auto loans.
“This is going to be a challenging 12 months, I want to be sort of realistic about it,” he said during Tesla’s annual shareholders meeting May 16.
Perhaps in an attempt to salvage the situation, Musk recently announced new upcoming models, a new CEO for Twitter and a reversal of his stance against TV advertising.
With renewed focus, Tesla could sail through rough waters as it has several times in the past. Long-term investors may want to watch these developments closely.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
