London Daily

Focus on the big picture.
Saturday, Jan 17, 2026

Elon Musk promised Tesla would benefit from his Twitter misadventure. But Wall Street is worried he's using Tesla as his 'personal ATM' to fund his wild plans for Twitter.

Elon Musk promised Tesla would benefit from his Twitter misadventure. But Wall Street is worried he's using Tesla as his 'personal ATM' to fund his wild plans for Twitter.

Elon Musk continues to sell Tesla stock to cover his Twitter project, totaling over $20 billion. Investors are worried about Tesla's future.

The impact of Elon Musk buying Twitter on Tesla is getting scarier for investors. For the third time, after saying in April that he had "no further TSLA sales planned," filings made on Wednesday revealed Musk sold 22 million more shares of Tesla, valued some $3.6 billion. That brings the total amount of Tesla stock that Musk has sold this year to $23 billion.

Just a few days ago, Musk promised that in the long haul, Tesla would benefit from his ownership of Twitter. But there's growing skepticism from analysts that will happen. Dan Ives at Wedbush wrote in a report on Thursday that Twitter remains a nightmare for investors because Musk has been using "Tesla as his own ATM machine to keep funding" the social network. 

Tesla's falling electric vehicle sales as countries around the world face their own recessions amid the ongoing fall out of the pandemic isn't necessarily a shock. But it does present a problem for Tesla and its owner, who continues to use its shares to fund his refashioning of Twitter for his ventures to build out 'the everything app' that he refers to under the name "X."

Ultimately, Elon promised Tesla shareholders they'd benefit from Twitter. He also promised he wouldn't sell any more Tesla stock. It's up to Tesla investors to decide whether he plans to keep his promise.



"Elon is Tesla's brand. He needs to pull it together," Loup Ventures' Gene Munster told Insider earlier this week. Some, like major Tesla shareholder KoGuan Leo, have gone so far as to suggest that Musk has "abandoned" his duties at the carmaker, and called for a new CEO to replace him.

Meanwhile, Insider has reported on a slate of problems for Twitter that include: advertisers that have suspended their activity on the platform; the failure of Elon's reimagined Twitter Blue; growing concern around the rise of bigotry on the platform; and Elon's troubling political tweets that seem to be adding to the non-stop swirl of controversy around the company. 

In his note to clients, Ives maintained an outperform rating for Tesla, indicating that he expects Tesla's rate of return to do better than its peers despite signs that it won't be the best performer in the batch.

Munster, for his part, further admonished that Elon would cause long-term damage if he does nothing about the number of issues arising from the billionaire's purchase of Twitter. 

The broader market is also worried. Tesla's stock has dropped 31% since Musk bought Twitter at the end of October. When you track how the stock has held up since Musk's offer to buy Twitter in mid-April, it's down 52%. It should be noted that tech stocks lost trillions of dollars in value this year due to a drop in consumer demand, inflation, and the overall market correction from the astronomical multiples seen the year before.

Tesla faces other issues besides Musk's Twitter problems. The company is no longer the main electric car maker on the block in multiple countries. Since new entrants have carved out their own market share and traditional automakers have successfully launched a series of hybrids and their own EV models, Tesla has seen a rise in competition in the US, China, and parts of Europe. 

It was only earlier this month that Bloomberg reported that Tesla was slashing some of its production output in China by 20% to 30%, a sign that the reality of sales didn't live up to what they were projected to be. It's been also reported that the EV maker lowered the cost of its cars in China in an attempt to boost sales. It worked, but Tesla ultimately lost out to its Chinese competition, BYD.

"More activism and growing investor frustration will force the Board of Tesla to confront some of these issues head on in the near-term. This is a moment of truth for Musk and Tesla," wrote Ives.
Newsletter

Related Articles

0:00
0:00
Close
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
×