Wedbush’s Dan Ives said that Tesla shareholders are increasingly worried about Elon Musk managing his multiple companies.

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• Wedbush analyst Dan Ives says that Tesla investors are becoming more concerned over Elon Musk's multiple roles.
• Musk is juggling three companies at the same time, all of which are in "pivotal moments".
• Ives stated that investors are concerned about more SpaceX failures taking Musk's focus away from Tesla.

Wedbush analyst Dan Ives says that Tesla investors are becoming increasingly worried about Elon Musk's ability to juggle his multiple companies. And continued failures at SpaceX may have a negative effect on Tesla stock.

Ives, in an interview on CNBC, said that Musk is juggling many balls at once. He was referring to Musk's concurrent roles as CEO of Tesla SpaceX and Twitter. He cited SpaceX's rocket flight on Thursday in which the spacecraft caught fire shortly after takeoff, and Tesla stock fell 8%.

Tesla shares have been hit by recent price reductions on key models, which led to a lower first-quarter profit. Ives noted that the success of Musk’s companies is "tied" together, and investors have grown concerned about Musk's leadership abilities.

Musk continues to spend a lot of time on Twitter while Tesla is in a price-war. "I think that from an investor's perspective, they are just concerned about balancing everything at such a crucial time for all of these companies," he continued. "If SpaceX has more success or failures in the future, this will take up more Musk's time. This is bad for Tesla."

Musk's $44 billion overhaul of Twitter raised many concerns among investors last year. Musk, who acquired the social media platform in 2013, has made drastic cost-cutting measures, implemented massive layoffs and performed other major changes. He even slept on the couch of Twitter's headquarters for a few days to manage the company.

Tesla investors have asked Musk to leave the social media platform that is struggling. Musk had previously promised to leave if he could find someone "foolish enough" to replace him.

Musk launched a new company called X.AI that he claims could create a ChatGPT rival bot called TruthGPT.

Ives stated that "Musk is being stretched into many directions."

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By: jsor@insider.com (Jennifer Sor)
Title: Tesla investors are growing more worried about Elon Musk juggling his many companies, Wedbush’s Dan Ives says
Sourced From: markets.businessinsider.com/news/stocks/elon-musk-tesla-stock-spacex-twitter-rocket-launch-explosion-wedbush-2023-4
Published Date: Fri, 21 Apr 2023 15:07:38 +0000

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