Tesla Inc. (NASDAQ: NASDAQ:TSLA) has faced a notable decline in its stock performance, with investor Gary Black citing CEO Elon Musk's acquisition of Twitter as the primary reason. According to Black, Musk's need to fund the social media purchase led to the sale of $23 billion in Tesla shares, causing the stock price to plummet from $328 to $235. This 28% decrease starkly contrasts with the 15% gain seen by the Nasdaq overall.
challenges the view presented by Whole Mars Catalog influencer Omar Qazi, who attributed Tesla's stock weakness to a burst in the electric vehicle (EV) bubble. Instead, Black pointed out that Tesla's downturn was not due to the same issues plaguing other unprofitable EV companies on the brink of bankruptcy. Tesla's negative earnings forecast was impacted by the company's decision to slash prices by an average of 18%, which did not result in an increase in sales volume.
Despite these challenges, Black remains positive about Tesla's future, particularly with the anticipated launch of the Cybertruck. He expects a "halo effect" similar to the one experienced during the Model Y launch year, which could potentially boost investor sentiment and the company's market performance. On the Friday before the article was published, Tesla's stock saw a slight uptick, closing up by 0.53%.
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