Shortly after deciding to buy Twitter, Elon Musk, CEO of Tesla, sold around $8.5 billion worth of shares in the automaker. If nothing is confirmed, speculation is rife: the sale would be part of a strategy to raise the necessary sum to buy the famous social network, whose sale amounts to 44 billion dollars. Before long, Tesla’s stock value was plummeting and Musk had an interesting message on – we give you a thousand – Twitter, where he discusses the question of investing.
“Since I am often asked, writes the entrepreneur, buy shares in several companies that manufacture products and services to which you believe. Only sell if you think their products and services indicate an unfavorable trend. Don’t panic when the market panics. It will serve you in the long run.”
The post obviously did not go unnoticed. The timing of Elon Musk’s posting suggests it’s more of a way to manipulate Tesla shareholders than just benevolent advice. The entrepreneur also contradicts himself somewhat by selling his Tesla shares to buy Twitter, even though he claims that Twitter is a platform he “believes in” for the future.
Overall, Musk’s recommendation isn’t bad when you consider the big picture. Warren Buffett, investment genius, has always insisted that it is crucial to invest only in companies in which you have complete confidence. It is also true that many shareholders act according to the evolution of the market in the event of crises, as the fate of Tesla shares shows.
Musk also assured a few days ago that he had no further intentions to sell Tesla shares, as they fell 20% (a considerable figure) after Musk revealed that he had bought 9.2% of Twitter shares. A considerable loss for the billionaire as Tesla has just lost 125 billion in value.