From Twitter to Tesla, Elon Musk’s weakened empire

Things are getting complicated for Elon Musk

A year ago, the head of Space X and Tesla was simultaneously named “personality of the year” by the American magazine Time. Musk had joined Olympus. Except that his first steps as head of Twitter turned out to be disastrous: his abusive leadership, his back and forth on moderating content, deleting and then restoring the accounts of American journalists… The result is that a certain number flee of major advertisers and losses for Twitter, which could reach 4 billion dollars in 2022: 18 times more than in 2021!

This debacle also affects Tesla

For two reasons.

First, the image of Tesla is that of Musk, and the billionaire’s escapades could well reflect on the brand. Then, because Musk got a lot of debt to buy – very expensively – Twitter and was forced to sell a lot of Tesla stock for it. He now owns only 13% of the capital in the company. And the stock market literally collapsed.

All of this goes down badly because the American manufacturer’s hegemony on the electric vehicle is cracking. Every car brand on the planet is making an extremely fast switch to electric with a much wider range of cars than Tesla. The competition will be tough, both at the top of the range with Volvo for example, but also on much cheaper cars. Especially since the Chinese manufacturers (such as BYD or Wuling), which are the largest manufacturers of electric cars in the world, are in ambush.

Are Musk and Tesla threatened with bankruptcy?

No, we’re not there at all. Tesla’s profitability today is the highest in the entire global automotive industry. The problem is elsewhere: Tesla shareholders are starting to really worry and complain about their CEO’s time on Twitter. They passed everything on to him when everything went well, but it is not certain that it will continue for long. Recently, it was one of the company’s largest individual shareholders, a billionaire of Indonesian origin, who said that Tesla no longer had a boss today. And all these financiers could try to find him a successor in 2023 to save the company.

It has been forgotten, but twice in the past, Musk has been fired by shareholders and the board of directors from the position of CEO that he held in companies that he himself had created. That’s right, it was a long time ago. And Musk didn’t have the aura he has today. But sometimes the story falters.

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