Some shareholders say Mr. Musk’s off-the-cuff posts on Twitter — he once drew comparisons between Justin Trudeau, the prime minister of Canada, and Hitler — have already damaged Tesla.
“The guy has said so many controversial things,” said Kristin Hull, founder and chief executive of Nia Impact Capital, a fund in Oakland, Calif., that invests in firms with a positive social impact. “Are they distractions? Are they confusing? Has he interfered with the stock value through his tweets? Absolutely.”
How Elon Musk Bought Twitter
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A blockbuster deal. Elon Musk, the world’s wealthiest man, capped what seemed an improbable attempt by the famously mercurial billionaire to purchase Twitter for roughly $44 billion. Here’s how the deal unfolded:
The initial offer. Mr. Musk made an unsolicited bid value greater than $40 billion for the influential social network, saying that he desired to make Twitter a personal company and that he wanted people to have the opportunity to talk more freely on the service.
With Mr. Musk becoming Twitter’s owner, “it only gets greater,” Ms. Hull said. Nia recently sold most of its shares in Tesla, she said, since the fund was dissatisfied with the corporate’s response to accusations of racism at its factory in Fremont, Calif.
Mr. Musk’s ownership of Twitter could alienate some potential Tesla buyers. Amongst people considering buying an electrical automobile, Democrats outnumber Republicans by almost two to 1, based on Morning Seek the advice of, a research firm. But Democrats are also the group almost certainly to be delay if Mr. Musk, within the name of free speech, opens Twitter to extremist views or misinformation.
The Twitter acquisition could intensify scrutiny of Mr. Musk by stock market regulators. He has been sued by a Twitter shareholder who accuses him of missing the regulatory deadline to report that he had amassed a 5 percent stake within the platform.
The lawsuit, filed by Block & Leviton, a Boston law firm, claims that Mr. Musk saved himself tens of hundreds of thousands of dollars by waiting six days past the deadline to reveal his stake. He was capable of proceed buying Twitter shares more cheaply than would have been possible if his interest was public knowledge, the suit claims.
Mr. Musk has an extended history of antagonism with the Securities and Exchange Commission. Last month he did not persuade a Latest York judge to release him from a 2018 agreement with the S.E.C. that requires him to have an organization lawyer screen his social media posts if the statements could move Tesla’s share price.