Tesla shares drop as investors bash Musk’s Twitter focus

Tesla shares extended declines to hit their lowest level in more than two years on Wednesday, as investors, including a “fanboy” of CEO Elon Musk, lashed out at Musk’s distraction from the electric car company following his buy of Twitter.

Shares of Tesla, the world’s most valuable carmaker, is one of the worst-performing stocks among major automakers and tech companies this year. Investors worry that Musk’s Twitter buy could divert his time from Tesla. He could offload more Tesla stocks to prop up the struggling social media company.

Investors are also increasingly concerned that his antics could hurt the brand and sales of Tesla, the world’s top electric carmaker, which faces increasing competition.

“Elon abandoned Tesla, and Tesla has no working CEO,” KoGuan Leo, the third largest individual shareholder of Tesla, describes himself as Musk’s “fanboy,” tweeted on Wednesday.

Tesla Chief Executive Elon Musk speaks during the live-streamed unveiling of the Tesla Semi electric truck, in Nevada, U.S. December 1, 2022, in this still image taken from video. Tesla/Handout via REUTERS

“Are we merely Elon’s foolish bag holders?” he said. “An executioner, Tim Cook-like, is needed, not Elon.”

Tesla shares traded down 1.4% after falling as much as 3.2% to $155.88 per share, the lowest level since November 18, 2020.

Tesla shares have slumped 55% so far this year, lagging behind the performances of GM, Ford, Apple, and Amazon.

Musk said Tuesday that he “will make sure Tesla shareholders benefit from Twitter long-term,” without elaborating. Even Tesla bulls and loyal fans expressed discontent over Musk’s controversial tweets.

“Elon is a brilliant business leader. He will realize soon (if not already) that his polarizing political views are hurting customer perceptions of $TSLA EVs,” Gary Black, a Tesla bull, tweeted on Wednesday.

“Customers don’t want their cars to be controversial. They want to be proud to drive them – not embarrassed.”

Goldman Sachs on Tuesday cut the price target for Tesla shares and lowered estimates for the company’s deliveries and gross margins for the fourth quarter, reflecting softer supply and demand.