Elon Musk could be obliged to sell Tesla stock if advertisers continue to ditch Twitter in masses, according to Loup managing partner Gene Munster.
In an interview with CNBC on Monday, Munster said that although Musk can still reverse course and stop the bloodbath at Twitter, the billionaire is running out of time.
Musk, who took control of Twitter last month, has said the social media giant is shedding $4 million a day, and analysts have pointed out that a key debt payment is due in April. Meanwhile, the likes of Volkswagen, Pfizer, and General Motors have said they will halt advertising on Twitter.
“They have a month here to kind of kitchen sink things and get people to reset with what their products are and get advertisers to understand what their content moderation is,” Munster said. “If that yields the current environment, he’s gonna have to sell Tesla shares in April.”
Tesla stock declined 4.5% to $198.15 on Monday afternoon.
Musk’s drawn-out takeover of Twitter finally came to fruition on October 27 at a price tag of $54.20 per share. He long maintained that cost-cutting measures at Twitter would imminently be necessary and had no remorse in firing several top executives and laying off half of the staff.