Telsa (TSLA) stock price has tanked 12% since Musk took control of Twitter (TWTR) on October 27

Summary:

• Twitter does not make money like Tesla.
• The serial entrepreneur made an effort to reassure Tesla's supporters and investors .

Investor confidence in Musk is lacking

The maker of high-end electric vehicles appears to be going through a similar experience to that of an orphaned kid or a beloved who has fallen from grace. Elon Musk, the company's dynamic and forward-thinking co-founder and CEO, appears to have lost interest in it. Put the blame on Twitter (TWTR), which needs a lot of attention due to its enormous influence on public and political life.

While Twitter does not make money like Tesla, it is nonetheless seen as our generation's equivalent of the town square, where trend-setters and opinion leaders congregate. Twitter sets the daily political agenda and the conversational subjects that eventually predominate in mainstream media coverage.

Responsibility also comes with this authority. You are responsible for the content management policy, which requires constant vigilance. Any error in the content that is put on the platform has the potential to spark controversy, which can be difficult and time-consuming to resolve.

Musk paid too much for Twitter—$44 billion. As part of the leveraged buyout, the billionaire owes around $13 billion in debt, which is secured by his remaining Tesla stock. He has been looking for ways to make money for the social network since he took control on October 27. But as Musk becomes more active on Twitter, Tesla's stock price declines. At the Baron Investment Conference on November 4, the billionaire claimed that since he bought Twitter, his workload had increased from "78 hours a week to perhaps 120."

The serial entrepreneur made an effort to reassure Tesla's supporters and investors by claiming that he was still actively involved in the company's management. The message didn't reassure anyone. Since that time, Wall Street has seen a continuous decline in the price of Tesla stock. Tesla shares dropped to $196.66 at the close of trade on November 7—their lowest price in 52 weeks.

Since Musk sealed the Twitter agreement on October 27, Tesla stock has fallen 12.4%. Tesla shares have lost a total of 41.2% of their value, or $197.08, since Musk revealed his offer on April 25. This results in a market value decline of about $436 billion. The holding company of renowned investor Warren Buffett, Berkshire Hathaway (BRK.A), surpassed Tesla on November 7 to become the sixth-largest corporation in the world by market capitalization.

✕ TSLA Price Chart

Sources: finance.yahoo.com, thestreet.com