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 deteriorating, the likelihood of a stock sale is increasing. The company is also under pressure to meet loan covenants related to its $13 billion debt from the acquisition. As the deadline for Musk's pledge approaches, investors are becoming increasingly anxious about the potential implications for Tesla's stock.

- 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 a potential cash shortfall of $1 to $2 billion annually for X.

- Musk's previous commitment to not sell Tesla stock until 2025 may be at risk.

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