As Tesla Shares Drop Below $200, Analyst Suggests A Fix It Has Nothing To Do With The EV Maker
Elon Musks newest business Twitter is weighing down on the shares of his flagship TeslaInc. TSLA venture, andFuture Funds Gary Black shared his thoughts on fixing the social media platform.
What Happened: Black commented that the Twitter news is getting worse, referring to the fact that advertisers are pulling back from the platform. Advertising revenue makes up more than 90% of Twitters topline.
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As advertisers leave, Twitter might be required to raise more funding, Black said. The social media platform may need finances to run its operations and also pay off the debt on its balance sheet, which got bloated with the loan Musk took to fund the purchase.
Musks top engineers shouldnt be running Twitter, Black said, adding that the billionaire should bring in the right skills to fix it. Black is of the view that the Tesla CEO should have to bring in 50 brand managers or advertising executives.
Elons threats arent helping, he added.
Why Its Important: Tesla shares have been under pressure ever since they hit an all-time intraday high of $414.50 on Nov. 4, 2021. A 3-for-1 stock split implemented in late August has done little to revive the sagging stock.
The uncertainty in the run-up to the consummation of the Twitter deal and following the deal closure has made matters worse for the EV makers stock.
Price Action: On Monday, Tesla shares closed below the psychological mark of $200 for the first time since early June 2021.
Tesla settled Mondays session 5.01% lower at $197.08, according to Benzinga Pro data.
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