- Elon Musk’s revived Twitter takeover is bad news for Tesla, according to Wedbush’s Dan Ives.
- Musk has offloaded Tesla shares this year to fund his $44 billion Twitter bid.
- “That’s like me giving away caviar to buy a $2 slice of pizza,” Ives told the BBC.
A significant chunk of Musk’s $250 billion fortune is tied up in Tesla shares and his stake in SpaceX. Ives said that Musk will have to offload more Tesla shares to fund his takeover attempt – which could lead to the electric vehicle maker’s stock falling further.
“That’s like me giving away caviar to buy a $2 slice of pizza,” Ives told BBC’s ” Today” show Wednesday.
On Monday, Musk proposed restarting talks to buy Twitter at the originally-agreed price of $54.20 a share in a letter addressed to the social media giant’s lawyers, according to a Securities and Exchange Commission filing.
Musk, who is both Tesla’s largest shareholder and the world’s richest person, has trimmed down his stake in the electric maker this year in a bid to raise cash to fund his Twitter takeover attempt.
He offloaded $6.9 billion in Tesla shares in August, meaning he has cut down his stake by around $32 billion over the last 12 months.
Ives said at the time that Musk’s Tesla stock sale was “writing on the wall that a deal could be on the cards” — and upgraded his Twitter price target from $30 to $50 a share.
Tesla fell 1.26% to trade at $246.29 in Wednesday’s premarket, while Twitter slipped 0.48% to $51.75.