Any Twitter (TWTR) deal for Elon Musk will mean more love and attention for his valuable asset Tesla (TSLA) – at least that’s what investors are reading on Tuesday.
Shares of Tesla popped up 4% in pre-market trading because Musk’s deal for Twitter was thrown into new doubt when he suggested that the social media site contained less than 5% of fake accounts published in security filings.
In a morning tweet, Musk said, “Yesterday, the CEO of Twitter publicly refused to show <5% evidence," adding that "the deal cannot proceed unless he does."
Twitter shares fell 3%.
Tesla’s stock has fallen 34% since Mask released a 9.2% stake on Twitter in early April, probably reflecting investors’ concerns that the buying story is diverting Musk’s attention from EV maker activities and the future.
Since revealing that partnership, Mask has generally behaved in a casual fashion. He first described himself as a passive investor before pivoting to become active; He initially agreed to stay on board but also changed his mind on that front. And since reaching an agreement on April 25 to buy Twitter for 44 billion, the CEO has repeatedly shown signs that he is thinking twice.
Musk’s new tweet comes after an exciting exchange on social media platforms on Monday.
Twitter CEO Parag Agarwal wrote a lengthy tweet thread claiming that Musk’s claim platform was full of fake accounts.
“We suspend more than half a million spam accounts every day, usually before any of you see them on Twitter,” Agarwal said. Says In the 13-tweet thread. “We also lock millions of accounts each week that we suspect may be spam – if they fail to pass human verification challenges (captcha, phone verification, etc.).”
Musk reacts with a stool emoji.
Musk is the richest man in the world on paper Follow 14 minutes later with: “So how do advertisers know what they’re getting paid for? It’s fundamental to Twitter’s financial health.”
In the midst of uncertainty, Twitter shares have now returned all their profits since Musk announced its partnership. Based on pre-market levels on Tuesday, Twitter shares are currently trading at $ 36.30, below its closing price of $ 39.31 before its shares were released.
Wall Street analysts believe the story weighs heavily on employee morale and its fundamentals on Twitter.
“I can’t imagine [being an employee there]; It’s like living in a washing machine now – you’re in the spin cycle, “Jefferis analyst Brent Thiel said on Yahoo Finance Live (video above) earlier Monday. “We have seen senior executives leave. The companies we cover in the tech industry have hired executives [of Twitter]. I think you’re watching the execs check out – they don’t want to be for the spin cycle. It will only make things worse. “
Brian Suzy A great editor and Yahoo is anchored in finance. Follow Suzy on Twitter @ Briansoji And then LinkedIn.
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