Tesla stock was trading at $224.97 as of 10:51 AM EDT.
The “soap opera” involving the CEOs of Tesla (NASDAQ:TSLA) and Twitter (NYSE:TWTR), according to Wedbush analyst Dan Ives, is thankfully ended.
Ives informed clients on Thursday that he believed the $44 billion price tag for Twitter to be “one of the most overvalued tech purchases in the history of M&A deals on the Street.” “Musk buying Twitter remains a significant puzzle that he eventually could not get out of after the Delaware Courts got involved, with the fair value that we would peg at approximately $25 billion.”
Nevertheless, he stated that he thought the cloud that had been looming over the Austin-based automaker has now mostly lifted. “We also think that since Musk has probably sold stock this week to pay for the remainder of the Twitter transaction,” Ives said.
New developments, Twitter stock
The future course of Twitter (NYSE:TWTR) and Elon Musk’s claims about an “X app,” which led to a Neutral rating on Twitter, is still very much in question. Prior to Thursday’s market opening, shares of Tesla (TSLA) increased by 1.22%.
Even though Tesla’s third-quarter EV deliveries increased by 42% to 343,830 units, they were less than the 371,000 units analysts had predicted. Some investors are concerned that the demand is dwindling due to the deficit.
Elon Musk, CEO of Tesla, stated during the earnings call that the company still expects deliveries to increase by “on average 50% a year as far as our vision will take us.” He added that the recent shortage was significantly impacted by the lack of available logistics capacity, but Tesla is aiming to eliminate end-of-quarter bottlenecks by coordinating regional builds throughout the quarter.
Even better, Tesla continued to deliver a strong financial performance. In the third quarter, total sales increased 56% to $21.5 billion, the operating margin was once again the highest in the sector, and free cash flow increased 148% to $3.3 billion. It’s important to note that despite the expensive production ramp at its newest Gigafactories in Texas and Germany, Tesla nevertheless managed to reach that industry-leading operating margin. That implies that as those facilities scale up, they should become even more effective.
Twitter Stock Inched Upward In Response To Reports That Musk Would Address Workers On Friday
Featured Image – Megapixl © Mohammedsoliman4
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