Latest News by Industry
Billionaire handles almost all decisions at his companies
Tesla Inc (NASDAQ: TSLA) shares slumped in early trading on Thursday as investors are concerned that Twitter may divert Elon Musk’s attention from the electric car maker.
Musk on Thursday made an unsolicited $43 billion acquisition bid to take Twitter Inc (NYSE: TWTR) private as he thinks the social media company “will neither thrive nor serve this societal imperative in its current form.”
The billionaire also heads Space Exploration Technologies Corp (SpaceX) and the Boring Co, other than Tesla.
Tesla fell 3.8% in the early trading session in New York. The stock has dropped nearly 14.2% since Musk revealed a stake in Twitter last week, more than double the decline in the broader S&P 500 Index.
Concerns around Musk’s ‘nano-management’
Shareholders are worried that Musk would get distracted from Tesla’s operations if his Twitter bid is accepted.
Experts think he is prioritizing a $35 billion social media company instead of focusing on his trillion-dollar EV company, as other carmakers are upping their game to introduce electric cars.
Tesla also plans to start the Cybertruck, Semi, and next-generation Roadster production next year.
Moreover, Musk has a strong hand in SpaceX, a major contractor for NASA, which launched the first space flight with private astronauts last week.
Even if he has executives to help run all of his different enterprises, Musk has earlier described himself as a “nano-manager” and handles almost all major decisions at his companies.
Musk said that he doesn’t have confidence in Twitter’s management, suggesting that he won’t be hands-off if he succeeds in buying the social media company.
Picture Credit: Statesman
ALSO READ: