Why Musk’s Twitter Bid Has Shaken Tesla Investors

Some shareholders say that Mr. Musk’s off-the-cuff posts on Twitter – which he once compared between Canadian Prime Minister Justin Trudeau and Hitler – have already hurt Tesla.

“This man has said a lot of controversial things,” said Christine Hull, founder and chief executive of Nia Impact Capital, a fund in Auckland, Calif., That invests in companies with a positive social impact. “Are they interruptions? Are they confused? Has he interfered with stock value through his tweets? Absolutely.”

With Mr. Musk became the owner of Twitter, “It just gets bigger,” Ms. Said Hull. Nia, which recently sold a majority stake in Tesla, said the fund was dissatisfied with the company’s response to allegations of racism at its factory in Fremont, California.

Mr. Musk’s ownership of Twitter could eliminate some of Tesla’s potential buyers. Among those considering buying an electric car, Democrats are about two-thirds more than Republicans, according to research firm Morning Consult. But Democrats are also a group that is likely to be suspended if Mr Musk, in the name of free speech, opens Twitter for extremist views or misinformation.

The Twitter acquisition could intensify Mr’s investigation. Musk by stock market regulators. He has been sued by Twitter shareholders who have accused him of missing a regulatory deadline to report that he has acquired a 5 per cent stake in the platform.

The lawsuit filed by Boston-based law firm Block & Leviton claims that Mr. Musk saved millions of dollars by waiting six days after the deadline to declare his stake. The lawsuit claims that he was able to continue buying shares of Twitter for as little as possible if his interests were known to the public.

Mr. Musk has a long history of animosity with the Securities and Exchange Commission. Last month he failed to persuade a New York judge to release him from a 2018 deal with the SEC that the company’s lawyer needed to keep his social media posts on screen if the statements could move Tesla’s share price.

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