Tesla shares extended declines to hit their lowest level in more than two years on Wednesday, as investors in the electric car company — including a “fanboy” of CEO Elon Musk — lashed out at the billionaire for being distracted following his Twitter takeover.
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 Musk could offload more Tesla stock to prop up the struggling social media company.
“Elon abandoned Tesla and Tesla has no working CEO,” KoGuan Leo, the third largest individual shareholder of Tesla, who describes himself of Musk’s “fanboy,” tweeted on Wednesday.
“Are we merely Elon’s foolish bag holders? An executioner, Tim Cook-like is needed, not Elon,” Leo wrote, referencing Apple’s boss.
Tesla shares traded down 1%, after falling as much as 3.2% to $155.88 per share, the lowest level since Nov. 18, 2020.
Tesla shares slumped 55% so far this year, lagging the performances of GM, Ford, Apple and Amazon.
Investors are also increasingly concerned that his antics could hurt brand and sales of Tesla, which faces increasing competition. 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 as hell to drive them — not embarrassed.”
Musk said on Tuesday that he “will make sure Tesla shareholders benefit from Twitter long-term,” without elaborating.
Goldman Sachs on Tuesday cut the price target for Tesla shares and lowered estimates for Tesla’s deliveries and gross margins for the fourth quarter, reflecting softer supply and demand.
[Written in collaboration with other media outlets with information from the following sources]
