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- Musk is damaging Tesla’s brand from his Twitter sideshow, and he needs to “pull it together,” Loup’s Gene Munster said.
- “He’s going to cause some long-term damage if he doesn’t right the ship,” Munster warned.
- That’s also been the message sent by Tesla’s investors, who have expressed concern over Musk’s political tweets and his inattentiveness to Tesla.
Elon Musk’s Twitter sideshow is damaging Tesla’s brand, and he needs “to pull it together,” according to Loup Capital’s Gene Munster.
“I think what Elon is doing on Twitter is damaging the [Tesla] brand,” Munster, a self-proclaimed Tesla bull, said in an interview with CNBC on Tuesday.
That comes just a few months after the Musk acquired Twitter and embarked on a controversial revamp of the company’s operations, which include sweeping layoffs, forcing employees to work at its San Francisco headquarters, and Musk sleeping in the Twitter offices as he tries to trim costs at the struggling social media company.
Munster says people he’s spoken to have expressed hesitation at buying Tesla’s vehicles, which could stem from Musk’s image as he tries to put out fires at Twitter.
“Elon is Tesla’s brand. He needs to pull it together. He’s made these mistakes about running off on the mouth many times, and he needs to tighten up his message because he’s going to cause some long-term damage if he doesn’t right the ship,” Munster said.
That’s also been the message sent by some of Tesla’s investors, who have expressed concern over Musk’s political tweets and his inattentiveness to Tesla, which has lost nearly $700 billion in value over the past year. Recently, its stock price hit its lowest level since May 2021, which has largely been driven by poor earnings and waning confidence in Musk as he splits his attention between the two platforms.
Musk has also sold off his own shares of Tesla, raising alarm last month after quietly selling off another $4 billion shares ahead of his Twitter takeover. Musk could offload more of his shares if Twitter’s losses continue to mount, Munster previously warned: Companies have already suspended their ads on the platform after Musk’s takeover, and Twitter is losing roughly $4 million a day, Musk previously said, with a key debt payment to be made in April.
Tesla’s stock price has plunged 60% so far this year, down to $158.39 from $399.93 in January.