Tesla Stocks are Taking a Nosedive—Is This Because of Twitter?

Isaiah Richard, Tech Times 20 December 2022, 09:12 pm

In a not-so-surprising turn of events, Tesla is now losing money due to dips in its stocks, with as much as 8.12 percent earlier today, and this is a result of Wall Street downgrading its price targets on the market.

Many argue that it is because of CEO Elon Musk's newfound focus on Twitter, also using Tesla stocks to fund the social media.

Tesla Stocks are Nosediving Now, Wall Street Downgrades It

(Photo : JOHANNES EISELE/AFP via Getty Images)

According to CNN Business, Wall Street downgraded Tesla's price target earlier today, and it caused a domino effect for its stocks to dip by as much as 8.12 percent in the market.

It is unknown if this valuation drop will continue, especially as it is already nearing the end of the year, which Tesla is known for playing it safe and maintaining its values during the holidays.

According to TechCrunch, Tesla's shares are also hurting from the China sales in the current economy, with its latest policies in its country.

The Chinese government has dropped its strict and harsh restrictions regarding COVID-19, and it might hurt production and sales of plants in the region, with Tesla's Giga Shanghai known to be a massive revenue source for the company.

Is Twitter Hurting Tesla Stocks in the Current Market?

While the report centers on two reasons for hurting Tesla's valuation, shares, and stocks in the market, Twitter is still one of these, one that causes Musk's other companies to suffer.

With Chief Twit's current focus is on keeping Twitter afloat and operational, it is highly affecting his focus on the other companies which had his full attention back when he has not yet stepped in as the social media's CEO.

Elon Musk's Tesla and Twitter

There is news regarding Twitter's downfall under the Musk leadership in recent events, with claims that the social media is losing more money due to the many changes and current operations it is in. Rumors circulate on Twitter's headquarters in San Fransisco, CA is already skipping rent payments for its office, due to its losses.

It also goes alongside the rumor that Chief Twit is fully on board Twitter, and is neglecting Tesla, SpaceX, Neuralink, and other of his companies in his patronage of the platform.

Last week, it was revealed that the tech CEO sold as much as 20 million Tesla shares on the market to amass $3.5 billion for Twitter and use as funding. Allegedly, this move is to support Twitter in its current ventures. especially as it is losing more money than originally thought, with Musk taking on the burden to keep it afloat.

There are massive speculations behind the top billionaire's loss of revenue for his other "self-sufficient" companies, to support Twitter in the present. However, it already took its toll on Tesla with the recent downgrade from Wall Street, and the company suffering losses in its revenue.

This event serves as a reminder for Elon Musk and Twitter, as each company should be treated with the right amount of patronage, and not have one prioritized over the other.