Tesla, Elon Musk, Twitter: for a handful of tweets

Double (Tesla)

Posted Dec 15 2022 at 7:40 PMUpdated Dec 16. 2022 at 9:18 am

How to become the second richest in the world? It’s simple: just start first and buy a social network! The humor of Elon Musk, the impetuous buyer of Twitter who was booed by 18,000 people in San Francisco, will not go so far as to paraphrase Richard Branson’s self-mockery about his air investments. But the concern is palpable even among the most fervent supporters and shareholders of Tesla who fear being drawn into the descending orbit of the founder of SpaceX.

The billionaire has just descended from the first place of the planetary podium. Last year, Elon Musk had his taxes paid by hedge funds which took their losses on the short sale of the title of the manufacturer. But this year he himself has been the main driver of the normalization of the “Tesla exception” on Wall Street.

China demand fears

For thirteen months, its own sales of shares to finance the purchase of Twitter (40 billion dollars) have accompanied the evaporation of 740 billion of market capitalization at Tesla, or a third of Apple. The electric car maker, once worth as much as the rest of the global auto industry, is now only halfway to its height. Fears about Chinese demand and the cost of batteries end up making this Tarpeian rock even more slippery.

To note

The latest sale of Tesla securities made this month by Elon Musk brings his capital divestments since November 2021 to around $40 billion, calculated by Bloomberg.

The manager of The Future Fund, Gary Black, shareholder of the manufacturer, nevertheless believes that it is necessary to deduct from these sums the options exercised by Elon Musk during 2022 (i.e. 23.6 billion).

In net, Elon Musk has only been a seller of Tesla shares to the tune of 16.7 billion this year, after being a net buyer in 2021. His sales for the year (or 23.9 billion, according to Gary Black ) were executed at an average price of $244 per share (55% above the current price), while the options for the year 2022 were exercised at $344 each.

The billionaire still holds about 13.4% of Tesla’s capital. The stock is the worst performance of tech bigs (-61.6%) after Meta since its peak in early November 2021.

What keys to adapt in a complex environment?

How to react to the challenges of the energy transition? How to position yourself in an unstable economic and political environment? How can the innovation opportunities in each sector be best exploited? On a daily basis, through our decryptions, surveys, chronicles, international press reviews and editorials, we support our subscribers by giving them the keys to adapting to a complex environment.

I discover the offers