Okay, there’s already rather a lot that has been stated about how damaging Twitter has been to TSLA. However I feel persons are nonetheless undestimating simply how a lot worse it will possibly get.
Tesla traders are positively pissed at this deal. One, it drives Elon’s focus away from Tesla. Two, it pressured Elon to promote TSLA. Three, if Twitter cannot shore up its money circulation, Elon will seemingly should preserve promoting TSLA to fund Twitter.
Elon’s erratic habits is displaying greater than ever
I used to assume that Elon would make Twitter higher. Now I am unsure. His erratic habits is displaying up greater than ever.
He minimize half of the engineering employees, realized Twitter wanted some fired engineers, whereas making an attempt to cram untested monetization options into manufacturing. He is flip flopping on concepts inside hours.
His concepts are half baked. For instance, loads of individuals acquired verified as Lebron James, Trump, Nintendo, Jesus, and so on. The location is dropping its credibility quick which can scare advertisers.
Customers are additionally complaining about apparent bugs and points. It is just the start.
Worse, persons are seeing reside how Elon builds merchandise and it is most likely scaring Tesla traders that that is how he does issues: half baked concepts, empty guarantees, erratic.
Twitter’s debt reimbursement is big and Elon should proceed to promote TSLA to fund it
Twitter’s debt funds are round ~$1b/12 months in line with some reviews. Elon actually wants Twitter to start out turning the ship round quick and begin turning into worthwhile. It appears like he is making an attempt to throw something on the wall to get Twitter to extend income asap.
If advertisers proceed to drag out, he’ll have proceed to promote his TSLA shares.
He leveraged his Tesla shares to borrow to purchase Twitter. If TSLA drops, he’ll have to supply extra collateral or get margin known as.
Elon most likely does not know the right way to run a social media firm
It is more and more wanting like Elon doesn’t know the right way to run a social media firm. For instance, he is demanding modifications primarily based solely on his opinion as a substitute of operating A/B assessments to quantify the change. As somebody who ran a ton of A/B assessments for a product much like Twitter’s, there will be a number of unintended penalties on the subject of monetizations. IE. It appears like your change elevated income by 3% however it drops complete income by 5% after 2 months.
tldr: Musk desperately orders options out and in. Advertisers pull out or sit on the sidelines. Income falls. Musk tries much more determined issues. Extra advertisers go away. Musk must promote extra TSLA to fund Twitter experiment.
