1 Reason Why Tesla Stock Is Rising Today


What happened 

Tesla‘s (TSLA 3.28%) shares were rising this morning as the company’s outspoken CEO, Elon Musk, suggested in a few tweets that his proposed purchase of Twitter (TWTR 2.67%) may not happen — or if it does, it could cost less than originally planned. 

Tesla investors haven’t exactly been thrilled with Musk’s bid to buy Twitter, considering he’s selling some of his Tesla shares to do so and because some believe owning Twitter will distract him from the electric vehicle (EV) company. 

The EV stock was up by 2.3% as of 10:12 a.m. ET today.

So what 

Referring to Twitter’s previous claim that only about 5% of its accounts are fraudulent or spam, Musk tweeted early this morning that his offer to buy Twitter was dependent on the company’s Securities and Exchange Commission (SEC) filings being correct. 

Image source: Getty Images.

Musk said that the percentage of fake accounts could be 20% or higher, adding that the deal would be on hold until Twitter’s CEO proves the figure is less than 5%.

For its part, Twitter has stood by its estimates of fake accounts and said in a statement today that it’s “committed to completing the transaction on the agreed price and terms as promptly as practicable.” 

Now what 

Musk may be, as some have speculated, pushing the idea of higher spam accounts on Twitter as a way to lower his original bid price of $54.20 per share. 

Tesla shareholders appear pleased with either Musk’s attempt to lower the price of the deal or the chance that it could all fall apart.

What’s clear already, though, is that the Tesla CEO does appear a bit distracted with the purchase. During a time when company leadership should be focusing on navigating a difficult economic environment and challenging supply chain issues, the Twitter acquisition is becoming a bit of a sideshow.