What Happened to Elon Musk’s Deals?

What Happened to Elon Musk’s Deals?

2022-11-22 • Updated

Elon Musk is famous for his statements and tweets that spread around news headlines in a moment and provoke a lot of buzzes. This time, he claimed that he has “a super bad feeling about the global economy”. How can it shake the market? What does it mean for Tesla? Let’s discuss in this article.

Today’s Tesla situation

In a recent email to Tesla employees, Musk said that the company won’t only suspend recruitment but also reduce 10% of employees. However, according to the company’s employees, job cuts won’t affect those who produce cars or batteries. About 39% of Tesla's roughly 100,000 workers were "production line employees," according to the company's annual report.

The automaker's shares fell more than 9% on Friday after news of job cuts appeared. And Musk’s statement about “bad feeling” in the global economy didn’t help it.

Recent lockdowns in Shanghai hamper production at the company's local Gigafactory. In addition, commissioning costs and expenses associated with commissioning factories in Berlin and Austin have risen. All these factors are forcing investors to "discount car gross margins," which, according to analytics, probably peaked in the first quarter of the year.

While demand for Tesla cars still exceeds their production capacity, that doesn't necessarily preclude the need to control costs. So, does a challenging macroeconomic landscape in which the supply chain remains under pressure, inflation impacts demand, geopolitical risks rise, and capital markets remain depressed, call for some reduction in EV expectations?

TESLADaily.png

Tesla’s stock price has been fluctuating between $618 support and $800 resistance since May 11. Now it’s $706.

Twitter issues

Moreover, Elon's deal with Twitter hasn’t been completed due to disputes over bots. Last month, Musk said he was delaying the deal until the social media giant could prove that bots make up less than 5% of its users, the company said in public documents. Musk has calculated that fake accounts make up at least 20% of all users.

However, Twitter said it did share information with Musk about how it counts the number of spam accounts on the service. Moreover, executives told employees that Musk can't just delay the deal as the two sides had signed a merger agreement. The company confirmed on Monday that it would hold Musk accountable for the terms of his proposed $44 billion takeovers, suggesting even the company believes he may be trying to derail the deal. It's possible that Twitter could try to sue Musk to complete the deal if he tries to back out of the acquisition.

Shares of Twitter fell 1.49% on Monday, signaling increased skepticism that Musk will complete his offering at $54.20 a share. Shares have barely — and only briefly — topped $50 since Musk unveiled his buyback plan on April 14. The deal went through at breakneck speed partly because Musk turned down the opportunity to look at Twitter's finances beyond what was publicly available.

Musk probably has a different experience with bots on the platform than most. With 96 million followers, Elon probably attracts more bots than most users.

TWTRDaily.png

Now the price is consolidating between two important levels - $42 resistance and $35 support.

Bottom line

Due to all this news, we can just hope that Elon’s “bad feeling” is wrong and soon he’ll own one more company! Many traders support Musk and his companies and believe in the potential profit it can bring.

TRADE NOW

Similar

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

TESLA Earnings Report Outcome Forecast
TESLA Earnings Report Outcome Forecast

In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Will NETFLIX surprise investors?
Will NETFLIX surprise investors?

The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.

Latest news

European Currencies Ahead of the Banks' Statements
European Currencies Ahead of the Banks' Statements

On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.

Will the FOMC Surprise the Markets?
Will the FOMC Surprise the Markets?

The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?

What awaits the Oil Market in February?
What awaits the Oil Market in February?

Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera