As Twitter's Revenue Collapses by 84%, Tesla Bulls Fear Elon Musk Will Liquidate
Elon Musk's X revenue has fallen 84% since acquisition, prompting potential Tesla stock sales to cover losses. Analysts predict a 5% to 10% decline in Tesla's stock price.
Read original articleElon Musk is facing significant financial challenges with X (formerly Twitter), as the platform's revenue has plummeted by 84% since his acquisition. Reports indicate that X generated only $114 million in the U.S. during the second quarter of 2024, a stark contrast to $661 million in the same period of 2022. This decline is attributed to advertisers withdrawing due to Musk's controversial actions, compounded by X's lawsuits against some advertisers, which may further deter business. As a result, there are concerns that Musk may need to sell more Tesla stock to cover X's financial shortfall, potentially impacting Tesla's stock value negatively. Analysts suggest he might need to liquidate between $1 and $2 billion in Tesla shares, which could lead to a 5% to 10% drop in Tesla's stock price. Musk had previously committed to not selling more Tesla shares until 2025, but the dire financial situation at X may force him to reconsider this promise, raising fears among Tesla investors who recall the significant stock price drop following his last major sale.
- Twitter's revenue has dropped by 84% since Musk's acquisition.
- Musk may need to sell Tesla stock to address financial issues at X.
- Analysts predict a potential 5% to 10% decline in Tesla's stock price if sales occur.
- Musk's previous commitment to not sell Tesla shares until 2025 may be at risk.
- Advertiser withdrawal and lawsuits are key factors in X's financial struggles.
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I never bought his "I did it for the people" narrative his followers
He got a 96% haircut shortly after buying X. Now whether this was organized/planned I don't know (if it was then it needs to be addressed/discovered in court).
Tesla is struggling and his repeated disregard for securities law (probably thinking the MIC/SpaceX/Starlink will protect him from prison) is catching up with him.
With X liquidiation and Tesla securities fraud looming/flailing revenues around the corner, it could impact his tenure at his MIC ventures.
His support for Trump is also disingenuous and he doesn't really care for America he just wants a get out of jail insurance and taxpayer bailouts for not if but when Tesla comes under fire.
The pay-to-influence scheme with X Premium also has been nothing but disappointing in terms of revenues. Ad revenues are the life and blood of social media platforms, nothing else works.
Whoever buys X will be performing arbitrage essentially: The company was worth $50 billion roughly 3 years ago. It's worth somewhere around $4 or $3 billion realistically right now. If they can clean up the platform and lure back the advertisers which is very doable and re-IPO it would be a massive win.
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