12.05.2023 – Behind every strong man is a strong woman. Behind Elon Musk, there is probably Linda Yaccarino. The NBCUniversal manager could become the new head of Twitter. This would allow Musk to finally focus completely on Tesla – and hopefully soon get rid of a brake block on the tire.
Tesla bulls can use a little boost. In the short term, the share price has risen a little, here is the five-minute chart.
Source: Bernstein Bank GmbH
Tesla had largely met analysts’ expectations for the first quarter of 2023. However, the figures were not very impressive: net income slipped by 24 percent to 2.5 billion. At the same time, revenue climbed moderately from $23.21 billion to $23.33 billion.
A lot of work at Tesla
The automaker has some work to do: Tesla said the “underutilization of new factories” is melting margins, along with higher costs for raw materials, logistics and warranty costs. Demand is faltering, not least due to the sharp rise in electricity prices in the West. In addition, competition is growing steadily. Tesla has often failed to deliver on promises – the market is waiting for the cyber truck.
Fall from grace Twitter subsidy
Twitter remains one of Tesla’s biggest problems. Because around 23 billion dollars of the 44 billion needed for the Twitter purchase had been raised by Elon Musk by selling Tesla shares. This fall from grace has angered a lot of investors to this day: after all, anyone who invests money in the car business doesn’t need any disruptive fire from other companies. Given Elon Musk’s rather erratic nature, it’s quite possible that something like this will happen again, because Twitter might need further cross-subsidization.
No official confirmation yet
So yesterday Musk announced he had found a successor for himself at Twitter. She will take up her post at the social media network in around six weeks. Musk did not initially mention a name. According to the Wall Street Journal, however, it will be Linda Yaccarino. The manager is currently responsible for the global advertising business of the US media giant NBCUniversal. This is exactly where Twitter has had some problems since Musk took the liberty of freeing the twitter channel from left-wing censorship.
However, if you read the report carefully, you will notice that the WSJ writes that “talks” are ongoing with the manager – they are “in talks”. This means that the deal is not yet in the bag. If the manager still jumps out, then the current moderate recovery of Tesla should collapse.
However, if you read the report carefully, you will notice that the WSJ writes that “talks” are ongoing with the manager – they are “in talks”. This means that the deal is not yet in the bag. If the manager still jumps out, then the current moderate recovery of Tesla should collapse.
We think: Along with the cyber truck, a successful turnaround of Twitter could give Tesla stock new momentum. Conversely, a renewed looting of Tesla’s capital to prop up Twitter could further beat the stock down. Especially since operational problems need to be resolved. The drama is exciting all the same. So keep an eye on the real-time news. Whether long or short – Bernstein Bank wishes successful trades and investments!
___________________________________________________________________________________________________________________________
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice. CFDs are complex instruments and are associated with the high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFD with this provider. You should consider whether you understand how CFD work and whether you can afford to take the high risk of losing your money.7