Home Technology Elon Musk Dumping Tesla to Buy Twitter Is Like Selling Caviar for Pizza, Dan Ives Says

Elon Musk Dumping Tesla to Buy Twitter Is Like Selling Caviar for Pizza, Dan Ives Says

by Atlanta Business Journal
  • 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.

Elon Musk’s revived Twitter deal will be disastrous for Tesla, Wedbush Securities analyst Dan Ives has warned.

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.

Twitter sued Musk in July after he said he was terminating his deal to purchase the company. His backtracking means he could avoid a costly courtroom battle.

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.

Read more: Read Elon Musk’s letter to Twitter saying he’ll honor the original $44 billion deal if there’s an ‘immediate’ end to their court battle

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