Musk's financial woes at X have Tesla bulls fearing he will liquidate more stock

Elon Musk may need to sell billions in Tesla stock to address financial challenges at his social media company, X, formerly known as Twitter. The company has seen a significant decline in revenue, with a reported 25% drop in the last quarter and an 84% decrease compared to the same period last year, raising concerns about its viability. Musk's confrontational approach towards advertisers has exacerbated the situation, leading to a potential cash shortfall of $1 to $2 billion annually. Analysts suggest that Musk might have to liquidate part of his 12% stake in Tesla to cover these losses, which could negatively impact Tesla's stock value. Musk had previously pledged not to sell any more shares until at least 2025, but with X's financial situation worsening, the likelihood of a stock sale is increasing. The company is also under pressure to meet loan covenants related to its $13 billion leveraged buyout debt. As the deadline for Musk's pledge approaches, investors are becoming increasingly anxious about the potential for further stock sales.

- Elon Musk may need to sell Tesla shares to fund X's financial needs.

- X has experienced a significant drop in revenue, raising concerns about its future.

- Analysts predict Musk could liquidate $1 to $2 billion in Tesla stock.

- Musk had previously promised not to sell shares until 2025, but circumstances may force a change.

- The company faces pressure to meet loan covenants related to its debt.