Tesla Inc (TSLA)

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Tesla stock teeters near 'under-$150 mark' as Elon Musk promises 'benefit' from Twitter ownership
By: Morningstar | December 14, 2022

Musk promises long-term 'benefit' for Tesla shareholders from his Twitter ownership

Another day, another leg lower for Tesla Inc. stock, which on Wednesday was about $10 from trading under $150 and went the opposite direction of the broader equity markets ahead of the Federal Reserve's interest-rate decision.

Tesla (TSLA) stock has traded around two-year lows in recent sessions, and Wednesday's decline brings it closer to its lowest since Nov. 17, 2020, when it ended at $147.20.

Some long-time Tesla investors expressed concern over Musk's involvement with Twitter Inc. at the expense of Tesla this week, and Musk late Wednesday tweeted that he will "make sure" that his Twitter ownership will be beneficial for the EV maker's shareholders in the long run.

Musk bought Twitter for $44 billion in October.

Some of the recent controversies swirling around Musk's ownership of social-media company include a report in the New York Times that Musk allegedly is looking to cut costs by stopping rent payments on the Twitter's offices, stopping payments to vendors, and considering not paying severance to former Twitter employees.

Also this week, Twitter suspended an account tracking Musk's private jet, about a month after Musk said that his "commitment to free speech" would extend to that account, which he said brought a personal safety risk.

Shares of Tesla are down about 55% this year, with the brunt of the losses coming in the the months since the Twitter deal. The yearly losses compare with a decline of around 15% for the S&P 500 index in the same period.

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