Erratic Elon Musk Introduces Risks to Tesla Stock

After Tesla’s (TSLA) CEO, Elon Musk, bid for Twitter (TWTR), it added another distraction. The CEO
runs SpaceX, Boring Company, and Tesla. Twitter is not difficult to run but fixing its problems is a risk
for TSLA stock.

CEO Musk is attempting to slow the buyout process of Twitter. He questioned the 5% bots and fake
accounts Twitter claims. In reality, that figure is substantially higher. Twitter’s board needs to prove that
its methodology of estimating bots is reliable. If it fails to do so, Musk could offer a lower price.

Freedom of Speech
Elon Musk’s takeover of Twitter is about freeing speech on the platform. The bigger risk is balancing free
speech with bullying and harassment. That platform is like other social networking sites. It lets users post
anything they want but requires some moderation. Moderation needs resources.
This will add to Twitter’s costs.

Twitter may risk alienating all users the more it controls content posts. Users have plenty of other sites to
use instead. Pinterest (PINS) complements shopping and hobbies. Snapchat is great for connecting with
people. And Instagram, owned by Meta Platforms (FB), might find its way back to the mainstream.
Any problems from buying Twitter will distract CEO Musk. Tesla faces increasing pressure from new
electric vehicle firms. Eventually, consumers may want to try a Rivian (RIVN) or Lucid (LCID) EV. That
could hurt Tesla’s stock further.